Tax code

[Deleted User]

It certainly does mean that! The main incidence where I have come across expenses at that level are medical professional subscriptions (or mortgage interest many years ago)

Otherwise - something has gone wrong somewhere.

ad1927

unholyangel said:

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. 

It feels completely wrong to me.  I don't fancy a bill at the end of a tax year, and I am next to useless at recording what I have spent on work items.  £10k in expenses is about £800 a month spent in expenses, if it was costing me that amount to work I'd pack it in.  I'll get back to HMRC I guess because our HR dept just say it is right.

ad1927

purdyoaten2 said:

It certainly does mean that! The main incidence where I have come across expenses at that level are medical professional subscriptions (or mortgage interest many years ago)

Otherwise - something has gone wrong somewhere.

Yeah, but surely HMRC would want to see what my expenses were?  They can't just assume I am spending £10000 without checking.  I don't really fancy a bill at the end of the year, so will get in touch because this doesn't seem right. 

[Deleted User]

ad1927 said:

purdyoaten2 said:

It certainly does mean that! The main incidence where I have come across expenses at that level are medical professional subscriptions (or mortgage interest many years ago)

Otherwise - something has gone wrong somewhere.

Yeah, but surely HMRC would want to see what my expenses were?  They can't just assume I am spending £10000 without checking.  I don't really fancy a bill at the end of the year, so will get in touch because this doesn't seem right. 

Based on what you have said, the expenses should be in the low hundreds. For a high level expenses (over £1000 or £2500 professional subs) you would be expected to file an SA. Phone as close to 8am as you can to avoid the queues.

Dazed_and_C0nfused

I'll get back to HMRC I guess because our HR dept just say it is right.

I think you have misunderstood your HR department.  They cannot possibly know if the tax code is correct or not, they simply mean that if they use the tax code they have been provided with by HMRC then you will be able to earn £22k (by the end of the tax year) before paying any tax.

[Deleted User]

Maybe a simple case of a decimal point in the wrong place - 101.00 as opposed to 10100?

sheramber

What exactly did you claim?

How much travel expenses?

How much for uniforms?

How much for tools?

Peterxxxxxx

I’ve received my notification of tax code for April 2023-24. The form says check the code. I’ve read the form. Makes no sense to me. What is the calculation I have to do? What do I have to look up?

[Deleted User]

Peterxxxxxx said:

I’ve received my notification of tax code for April 2023-24. The form says check the code. I’ve read the form. Makes no sense to me. What is the calculation I have to do? What do I have to look up?

What’s the code? 

molerat

Peterxxxxxx said:

I’ve received my notification of tax code for April 2023-24. The form says check the code. I’ve read the form. Makes no sense to me. What is the calculation I have to do? What do I have to look up?

The form will show how they have calculated the code starting with the basic £12570 allowance and any additions / deductions.  You need to check the validity of those calculations.