confused by my tax code

jenny4288

Hello, I am hoping someone could put into simple terms for me my tax code issue.


I am currently on a 41T tax code, i have a company car, no fuel card and I pay for my own fuel. my tax code has changed about 8 times in the last 2 1/2 years and every time I phone the tax office they just say its correct.


Someone help a complete numpty!

Caz3121

does the tax office hold the correct address for you? each time there is a change in code you should receive a breakdown of how it is calculated

Company car will reduce your code but whether to the level shown will depend on the value and CO2 emissions...you should receive your P11D from your employer each year which will show your taxable elements...car, medical etc

bengalknights

Cas3121 is correct here have you been given your P11D and received the breakdown from HMRC about why its changed?

tebthereb

HMRC should be willing to say rather more than just "it is correct". If you have not received a PAYE coding notice in the post, or even if you have and you do not understand it, ask them to explain what allowances and deductions are in your PAYE code that result in 41T.

Broadly, a tax code of 41T means that you are being given £419 in tax free allowances at source for the year. As the standard tax free allowance for the current tax year is £10,600 - £11,000 for the next tax year - this would suggest you are being subjected to a lot of deductions.

That could be quite correct. Car benefit is often a big deduction, but again HMRC should be willing and able to explain exactly what is being adjusted. The standard allowance for the year is also reduced if taxable income is expected to exceed £100,000.

HMRC will base code changes on information received from you and your employer - for example, P11Ds submitted by your employer or tax returns submitted by you.