Why is my tax allowance so low?

ChrisKnight

New taxpayer here recently began my first post-uni full-time job at the beginning of January this year. I know a thing or two about tax but didn't really pay much attention to it on my payslips but the company I'm with received a phone call today to state that my tax code will be changing this new fiscal year 17/18. So I decided to look back at my payslips...

So my first payslip had Tax Code 1040L... which seems about right.
But then my next payslip has Tax Code 238T and this remained the following 3 months until today where I've been issued my new Tax Code of 836T.

Now my knowledge of Tax Codes suggests that that 238 is my allowance/10. My question is why is my allowance 2,380? Shouldn't it have been around 11,500? I'm guessing the T has something to do with it? I know that it denotes something along the lines of my tax being complicated or not-so-straightforward.

Thanks in advance.

TadleyBaggie

Ask HMRC, only they will know why you are on that tax code.

Caz3121

do HMRC have your current address?....coding notifications are usually sent by mail with the breakdown on how the code is calculated

agrinnall

TadleyBaggie wrote: »

Ask HMRC, only they will know why you are on that tax code.

If you don't have a P2 then you will need to do this.

The meaning of the T suffix is:

T Your tax code includes other calculations to work out your Personal Allowance, for example it’s been reduced because your estimated annual income is more than £100,000

https://www.gov.uk/tax-codes/letters-in-your-tax-code-what-they-mean

xylophone

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

The above may be worth setting up.

xylophone

And see https://www.gov.uk/income-tax-rates/current-rates-and-allowances

Dazed_and_confused

A T tax code is often (though not exclusively) used for a second job. Is it possible HMRC have you down as still employed by a former employer?

Or your salary is expected to be greater than £100,000?

Should be easy to sort with a phone call and probably worthwhile having a look at your personal tax account.