Change of tax code

dont_use_vistaprint

Iv'e just logged in and found my tax code has changed to 1321L from 1185L for 18/19 , no letter or anything, is this to reflect the new personal allowance

Dazed_and_confused

What new Personal Allowance??

There isn't one (at least not one I''ve heard about).

Who is using your tax code? Employer, pension payer or DWP?

Just because you see that on your Personal Tax Account doesn't mean it has actually been sent to anyone. You are better off relying on tax codes actually posted out to you. Which I assume the 1321L code was.

Out of interest have you recently filed a Self Assessment return?

dont_use_vistaprint

Dazed_and_confused wrote: »

What new Personal Allowance??
There isn't one (at least not one I''ve heard about).

I dunno , I assumed budget or something.

Dazed_and_confused wrote: »

Who is using your tax code? Employer, pension payer or DWP?

Just an employer

Dazed_and_confused wrote: »

Out of interest have you recently filed a Self Assessment return?

Yes submitted yesterday, but I have a bill so wasn't expecting any reduction in PAYE taxes. I was just checking PAYE income to date online and noticed the code looked odd, but cant see any notifications

Dazed_and_confused

It is very unusual for the Personal Allowance to change during the course of the tax year.

There is a new Personal Allowance (£12,500) for 2019:20 but that has nothing to do with your question about your 2018:19 tax code.

As you filed a Self Assessment return HMRC may well have updated your tax code to reflect the latest information you have supplied them with.

What things other than the Personal Allowance made up the tax code of 1321L?

Dazed_and_confused

Yes submitted yesterday, but I have a bill so wasn't expecting any reduction in PAYE taxes.

You have misunderstood the new tax code. It can only mean paying the same or more tax, not a reduction.

agrinnall

Dazed_and_confused wrote: »

Just because you see that on your Personal Tax Account doesn't mean it has actually been sent to anyone. You are better off relying on tax codes actually posted out to you.

I'm not sure I'd agree with this. I have recently received my first DB pension payment, which had 1185L applied, clearly wrong as I have a job that uses my personal allowance, but the pension provider wasn't to know that initially. My tax account now says that the pension code is BRX and the job tax code is 960L M1 to take into account the unpaid tax from that first pension payment. I have not recieved a P2 yet, but the new code has been applied to my latest salary payment. Should I be relying on a non-existant coding notice or the information in the tax account that appears to be correct and up to date?

Dazed_and_confused

agrinnall,

It isn't always an issue but there were some threads earlier this year where it was discovered that everytime you look at your Personal Tax Account a new tax code is calculated but they aren't always issued.

So the code 1185L probably does apply but it isn't guaranteed to.

Gut feeling is that the op had something like pension relief or expenses in their code but hasn't included this on their 2017:18 tax return and therefore HMRC have removed it from the tax code on the basis it no longer applies.

Need more info from the op to be certain though.

agrinnall

Dazed_and_confused wrote: »

agrinnall,

It isn't always an issue but there were some threads earlier this year where it was discovered that everytime you look at your Personal Tax Account a new tax code is calculated but they aren't always issued.

So the code 1185L probably does apply but it isn't guaranteed to.

Gut feeling is that the op had something like pension relief or expenses in their code but hasn't included this on their 2017:18 tax return and therefore HMRC have removed it from the tax code on the basis it no longer applies.

Need more info from the op to be certain though.

As it happens I've received the email below from HMRC (which explains why I haven't had a paper P2, but is still a bit late turning up - and can't be blamed on the volume of Christmas post ).


Your PAYE Income Tax records have recently changed. For security reasons we do not give the full details here but it could be because of a change in something like:

• a job
• your pay
• your company benefits such as a company car
• your pension

This means that the amount of Income Tax you will pay will change.
You should check your details to make sure they are right. This is so you pay the right amount of Income Tax.
Check your details
Sign in to your Personal Tax Account and go to the 'Pay As You Earn (PAYE)' section.
For security reasons we have not included a link in this email. To get to your Personal Tax Account search for 'HMRC Personal Tax Account'.
Signing in
Use your Government Gateway or Verify details to sign in to your Personal Tax Account.
You should have access to these as you have already used the service to choose to receive emails.
Why you got this email

You got this email because you've chosen to receive email updates instead of letters by post.
From HMRC Check your Income Tax

jimmo

Dazed_and_confused wrote: »

You have misunderstood the new tax code. It can only mean paying the same or more tax, not a reduction.

Have you misread the OP? His/her code has gone up from 1185L to 1321L which will mean a reduction in tax if it is applied.
OP: From the personal account home page the full sequence of links to follow is:
PAYE
Check Current Tax Year
Tax Code
Check Your Tax Free Amount.

You should then be able to see what has been added into your code.

Dazed_and_confused

Very good point. I had clearly had too much pre Christmas whisky that day and mistakenly read it the other way round

I guess the same principle applies though, the adjustment is presumably linked to submission of the 2017:18 Self Assessment return.

jimmo

I'll drink to that.:beer: