Anyone able to help with a k code query?

Darksparkle

Jem is right, a BR code would only allow 20% deduction. A D0 code allows for 40%.

Poppie68

jem16 wrote: »

As I have already said, BR means 20% tax so definitely not paying 40% tax if that is his tax code. He would also be massively overpaying tax not underpaying.

I'm not sure what else to say to you if you won't believe what I'm saying regarding the tax code.

Post the figures and tax code from one of his payslips so we can see what's going on.

Thanks for your help, it has been confirmed by the tax office this morning he is paying 40% on his wage.on BR, obviously .. He has spent 2 hours on the phone with him and gone back 7 years this is the time he has been out the army. For
the first for years he was a contractor but luckily he has kept every single slip he received from the umbrella company he used. Apparently there records show he should of received a rebate 2012 but it was never issued, they can't see why the K code has been issued or where the minus figure has come from so they are going to go through all his post army income from scratch and ring him next week.
I really don't know what to say about the 40% on his wage apart for his pay slips, payroll and tax office say he has been paying it through his wage which is definitely BR.

Poppie68

Darksparkle wrote: »

Jem is right, a BR code would only allow 20% deduction. A D0 code allows for 40%.

Thanks I realise that now...but something gone wrong somewhere, it may have all wrong when tax codes where swapped?

I

jem16

Poppie68 wrote: »

I really don't know what to say about the 40% on his wage apart for his pay slips, payroll and tax office say he has been paying it through his wage which is definitely BR.

I'm sorry but none of this makes any sense. If he has a BR tax code then they can't simply deduct 40% tax.

So either there is not a BR tax code attached to his employment or you are misunderstanding something somewhere.

Poppie68 wrote: »

Thanks I realise that now...but something gone wrong somewhere, it may have all wrong when tax codes where swapped?

Swapping tax codes should not have made any difference at all. The only way we can start to make any sense of this at all is for you to post the actual figures from his wage slip.

So can you give;

Gross taxable pay
Tax paid
Gross taxable pay to date
Gross tax to date
Tax code.

Poppie68

He is getting somewhere now..... 4 discrepancies picked up so far, they just called him for clarification. They entered £5200 instead of £520 for medical insurance, they have decided he should of been paying tax on his free accommodation which is provided by his employer, no tax due on that though as he lives during the week on a military base for operational reasons and they had calculated his car allowance incorrectly.
Now the biggy, the tax code problem did start when they were swapped, tax office have called payroll who confirmed deductions at 40% and passed onto the tax office, payroll obviously(and my husband) should of realised his code and deductions didn't add up.
Tax office confirmed to payroll they have received those payments but then only 20% was attributed to him because of the BR coding but they can't see at the moment were the rest of his tax payment has ended up.

That's also why he had received underpayment notification for the 3 years totalling 4k as jem said above it looks like he was underpaying by approximately1,500 each of those years when in fact he wasn't.



They are being very apologetic and have appointed a manager and another senior member of staff to sort it out so all will hopefully be sorted in the next couple of weeks.

I did pass onto him the advice regarding DO coding which he has now requested it gets changed to so thankyou for that.

Poppie68

Sorry I don't have the exact figures here with me as he accesses his payslip through the intranet.

jem16

Poppie68 wrote: »

Now the biggy, the tax code problem did start when they were swapped, tax office have called payroll who confirmed deductions at 40% and passed onto the tax office, payroll obviously(and my husband) should of realised his code and deductions didn't add up.

So they are saying employer error then?

Poppie68

jem16 wrote: »

So they are saying employer error then?

No idea at this stage, it looks like it's been a joint effort.. And I'm including my husband in that, if nothing else it's taught him to be more vigilant, 25 years of the Army dealing with his finances had made in more complacent.

Thankyou for the time youve taken I've actually learnt a few things from everyone's posts.

Poppie68

Well he's been sent an amended tax code notification out,he spoke to them regarding the above issue and they agreed his BR should be on his pension but the amendment still has his main pay at BR and pension amended from K1812 to 389L...from what has previously been said on here can I assume this is also incorrect?

Edit.... It says £0 of this income is tax free-BR.

jem16

Poppie68 wrote: »

pension amended from K1812 to 389L...from what has previously been said on here can I assume this is also incorrect?

Impossible to tell without more info. What does the P2 Coding Notice say with regards deductions to get the 389L tax code?

Edit.... It says £0 of this income is tax free-BR.

BR means all the income is taxed at 20% so no tax-free allowance on this which is to be expected. His tax free allowance is within the 389L tax code - you only get one tax-free allowance.