Tax code differences

JustAnotherSaver

I work with a relative of mine & to begin with our tax codes were the same.
I applied for that washing your own clothes tax code change which put my code higher & then they followed suit which matched our codes again.

Relative went to go work for another company, came back & our tax codes are different i've noticed.

Basically my code for the tax year just gone was 1066L, my relatives was 1068L.

Why would this be?

CLAPTON

JustAnotherSaver wrote: »

I work with a relative of mine & to begin with our tax codes were the same.
I applied for that washing your own clothes tax code change which put my code higher & then they followed suit which matched our codes again.

Relative went to go work for another company, came back & our tax codes are different i've noticed.

Basically my code for the tax year just gone was 1066L, my relatives was 1068L.

Why would this be?

£60 is the 'standard' allowance for washing a uniform
however, there are many other situations that allow a higher claim : maybe your friends employer has negotiated with HMRC for £80

the difference will make 20x 20% = £4 per year ( 7p per week difference to take home pay

JustAnotherSaver

I would bet all i had that our employer would not negotiate a higher allowance for my relative. They wouldn't negotiate a higher allowance for anyone ... unless they earned more money out of it themselves, in which case they wouldn't just select one person, they would do it for all.

Also (and no offence - this is just text on a screen, but i'm really not getting uppity) i'm not bothered how much or how little the difference is. For 1) I just want to know why there's a difference and for 2) i want anything i can get. If that's £4 per year & i'm entitled to it then i want it.

If it makes a difference based on job title then i'm just your general labourer whereas my relative is a driver.

booksurr

JustAnotherSaver wrote: »

If it makes a difference based on job title then i'm just your general labourer whereas my relative is a driver.

those two make no difference

the only way you will get an answer is to question your relative, the internet sure as heck cannot tell you.

He will have been sent a coding notice from HMRC explaining, in plain English, how they calculated it. If you haven't seen that letter then perhaps it is because his tax affairs are none of your business?

JustAnotherSaver

It may be "none of my business" but trust me if I asked about this letter then he would happily show me it if he had it because he's not one of these "none of your business" type of people & thank goodness for it!! Ok?

And if i knew i couldn't get the answer by asking online then i wouldn't have asked online. Obviously the fact i did ask here meant i thought it was possible to find the answer here. I wasn't just asking because i woke up & thought hmm, i'm bored, wonder what i can ask today that i wont get the answer to.

molerat

Perhaps he works in a slightly different industrial category now. The amount of allowance follows no real logic. https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32712

CLAPTON

JustAnotherSaver wrote: »

It may be "none of my business" but trust me if I asked about this letter then he would happily show me it if he had it because he's not one of these "none of your business" type of people & thank goodness for it!! Ok?

And if i knew i couldn't get the answer by asking online then i wouldn't have asked online. Obviously the fact i did ask here meant i thought it was possible to find the answer here. I wasn't just asking because i woke up & thought hmm, i'm bored, wonder what i can ask today that i wont get the answer to.

you have been given the answer : £60 is the standard but the actual amount can vary depending upon the circumstances : only your mate can tell you the specific circumstances in this case.

JustAnotherSaver

CLAPTON wrote: »

you have been given the answer : £60 is the standard but the actual amount can vary depending upon the circumstances : only your mate can tell you the specific circumstances in this case.

I know that i've been told what the standard amount is.

But this doesn't mean - i have told you the standard amount now don't you dare respond back in this thread.

Anyway, to not drift into that .... thanks for the reply.

Savvy_Sue

Surely one possibility is that the previous employer had, for example, negotiated a higher uniform allowance, and in coming back to the OP's employer this hasn't been re-adjusted?

suso

Job title is important -

Different jobs within the same industries gave different rates.

It might also be that the job your relative went to had a different allowance, even if they came back to work in your employment, in the last tax year, if they were entitled to 80.00 it would show for the entire year. I presume you are comparing payslips or p60's for 15 - 16

What should happen is that once a new job starts and a new tax year commences, the allowance should be removed, because of the low value of these it rarely happens, and these allowances stay in the codes for years, (Its also your relatives responsibility to tell the tax office if they are no longer entitled to the allowance or the amount is wrong.)

Simplest thing is just ask them.