Tax code been changed - anyone shed any light on this?

squ1rrel5

I have tried to speak to HMRC but struggling to get through - will try again in morning but wondered if anyone could make sense of situation before I speak to them.

My annual salary is £9575 per year. In 2015/2016 my tax code was the pretty standard 1060L - I have just been informed by my payroll dept that my new tax code has been changed to 602T and I have paid £71 in tax (first time I've paid tax in ages because I've been on such a low wage but don't understand why I'm paying it now. My tax-free allowance is £11k this year.

As well as being employed, I also recently registered as self-employed as I have started doing some freelance work in my spare time (I registered my business from 1st Dec 2015). Has this affected my tax code. I just assumed I would carry on paying no tax throughout the year on my current tax code and then once I had filled in my self-assessment later this year, I'd send a cheque for what I owed. I don't estimate that I'll earn over 2k from my freelance work as I'm only doing small bits and pieces. Plus I claim £150 per month in childcare vouchers which comes out pre-tax so should leave me well below the threshold of 11k over the next tax year.

Hope this all makes sense to someone - I'm quite new to self-assessment and tax problems so hoping someone may be able to help.

xylophone

http://www.hmrc.gov.uk/manuals/pommanual/paye11045.htm

Have you been given a code for your SE income?

suso

Your self employment - are you a director of a Limited Company,

I'm guessing HMRC think you have two jobs and have split your allowances

squ1rrel5

Sorry for the late reply, I set up as a sole trader only and have not been given a code for my SE. But it does look like they have split the allowance. Still not been able to get through to HMRC!

Dazed_and_confused

You don't get a tax code for your self employment (sole trader) Quickest way to check how your new code has been worked out is to look at your personal tax account on gov.UK.

Did you have a (paye) job before the one you are earning £9575 at? If so did you officially leave and did your.old employer send you a P45 when you left? If it was sort of left hanging then maybe the HMRC think you have two (PAYE) jobs?

squ1rrel5

Looks like it has been sorted - I gave my new employer my P45 on my first day of work but looks like it's taken them about 3 months to process it. I've spoken with HMRC and my tax code for this year seems to be back at the normal level (1100L) for 2016/17. Should get refunded in my next pay packet (fingers crossed).

Thanks for the advice - Dazed and Confused I didnt realise I could check my current code online, just thought that was for self-assessment so thanks for the tip!

bigfreddiel

Everyone has a personal tax account.

https://www.gov.uk/personal-tax-account

If you have verified yourself on .gov.uk you can see how your tax code has been arrived at and adjust it if incorrect.

My tax codes changed, incorrectly, and by logging on to my personal tax account or PTA, I corrected the mistake HMRC had made and my tax code is now correct. Great app, and saved me time and money calling HMRC on their expensive 0300 number.

Cheers fj