Tax code

Penguin_

Just a quick one, didn't want to start a new thread but my Tax Code on my P60 is C1022LM1

I know the C denotes I'm a Welsh tax payer, the L denotes standard Basic Rate but can the M mean anything other than Marriage Allowance? I only ask because I'm not married....

kuratowski

M1 means "month 1" it actually signifies that the tax code is to be applied non-cumulatively.  Rather than the usual cumulative treatment.

Did you change jobs in the year or change benefits/allowances at all?

Penguin_

Ah thank you, yes I changed jobs half way through the year but oddly my P60 doesnt include the earnings from my previous role

kuratowski

There should be separate boxes: "in this employment" / "previous employment".  But you should also have the figures from your P45 Part 1A.

[Deleted User]

Penguin_ said:

Ah thank you, yes I changed jobs half way through the year but oddly my P60 doesnt include the earnings from my previous role

It won’t if a month 1 code applies. It will only show ‘pay from this employment’ if month 1 has been applied from the start of that employment.

kuratowski

[Deleted User] said:

It won’t if a month 1 code applies. It will only show ‘pay from this employment’ if month 1 has been applied from the start of that employment.

Of course this is correct  

Penguin_

I can't help but think the company processing my new employers have not put my P445 details in when starting me as a new employer as I had a normal C1200L tax code upon leaving my previous role. 

unholyangel

Penguin_ said:

I can't help but think the company processing my new employers have not put my P445 details in when starting me as a new employer as I had a normal C1200L tax code upon leaving my previous role. 

Did they actually have your p45 when you started? The reduction to your code at the new employer would imply imo there was no p45 available at the time you started your new employer as the old employer still had a payment to make to you. 

The old employer can't issue the p45 until they've paid you everything. If you were paid by both employers during the same PAYE period (perhaps 15th in one job and 30th in the other) then this would normally mean you would receive more allowance or rate band that month than you were meant to, and this would have caused the reduction of your code from C1200L to C1022L. Your payslips should confirm this (if you're unsure, give the payment dates on here for last payslip from old and first payslip from new). 

Btw, the L doesn't mean basic rate - your tax code doesn't really tell your employer how much tax to deduct, it tells them how much not to tax (ie the code C1200L, £1000 each calendar month can be paid without deducting tax). The m1 isn't actually part of you tax code, its just the basis the code is being operated on (different payroll software will show it in different ways, some might have an X at the end). 

ad1927

Luckily there is a thread on this, so I thought I'd ask here.

I have been given a tax code of 2267.  This is because I incur some charges on travel for work, uniforms and some tools (new job).  

It has a breakdown of 12570 for earnings
10100 for job expenses.

But, there is no way I will incur 10,100 in job expenses.  Now, I am guessing that doesn't mean I can just earn 22670 before paying tax right?  I've tried talking to my HR, but they are basically saying it does mean that. Very confusing.  

I should keep receipts for all my expenses I guess?  Does this mean I should also be looking at self-assessment?

unholyangel

ad1927 said:

Luckily there is a thread on this, so I thought I'd ask here.

I have been given a tax code of 2267.  This is because I incur some charges on travel for work, uniforms and some tools (new job).  

It has a breakdown of 12570 for earnings
10100 for job expenses.

But, there is no way I will incur 10,100 in job expenses.  Now, I am guessing that doesn't mean I can just earn 22670 before paying tax right?  I've tried talking to my HR, but they are basically saying it does mean that. Very confusing.  

I should keep receipts for all my expenses I guess?  Does this mean I should also be looking at self-assessment?

If your code is wrong, amend it. Else you'll end up  with a bill when reconciled/you submit your return. 

How did you get 10k of expenses in your code without already completing a self assessment? Anything over £2500 requires you to register for self assessent.