Tax code query

eastcorkram

Quick question about my tax code. I received a new tax code by post. It's 390L X. The letter clearly states that the x means it will be reviewed at the end of the year. I'm happy enough with the code, as it's about right, but........
My employer has started using the new code, but as 390L X wk1.
When I asked about this, I was told that the x means it's a wk1 code.
Now I've had wk 1 codes in the past, but that's always been indicated on the letter.
So, is my employer correct, and if they are not, does it actually matter? As in, does it effect the amount of tax deducted over the year?

molerat

https://www.gov.uk/tax-codes/emergency-tax-codes

eastcorkram

So the employer is correct?

chrisbur

eastcorkram wrote: »

So the employer is correct?

Yes an X means it is applied on a week 1 basis, that is each week your taxable pay for that week is used and a tax free allowance of 1/52 of the yearly tax allowance for your code is deducted from that to get the figure you pay tax on. It is common prectise for HMRC to use a week1/month1 code if they reduce your tax code as otherwise you could get hammered for tax the first week it is applied as it would be back-dated to the start of the year.

Different payroll programs use different ways to show the difference between how the code is applied eg week 1, non-cumulative, non !!! (first three letters of cumulative) X, 1.

The examples on the .GOV website that the link goes to are a bit misleading as they assume the emergency tax code (which you are not on ) is always applied on a non-cumulative basis but in many cases it is applied on a cumulative basis.