738LX tax code

Jibber123

I've just come to the end of a temporary 3 month job and I've got an email from HMRC saying i might be paying to little tax. I logged into the gov.uk website to view my PAYE info and i seem to have been given 2 odd tax codes. I was originally on 1250L last year as i worked 1 job and earned about £9000 a year. In April i got a slight pay rise putting me up to £9360. and then i took a tempory 3 month job in September where i'll earn a little over £6000 in the 3 months. But i'm still working my old job as well 1 day a week, for the 3 months, so only £360 a month. My 2 tax codes are now BRX and 738LX i can''t seem to find anything out about the 728LX code and what it means.

unholyangel

The x means non-cumulative.

What tax codes were your jobs using prior to this?

Its possible both employers were giving you a tax free allowance when only one should have been giving it. Which would have resulted in you paying less tax than you should have, from 6th April 2019 till now.

chrisbur

Jibber123 wrote: »

I've just come to the end of a temporary 3 month job and I've got an email from HMRC saying i might be paying to little tax. I logged into the gov.uk website to view my PAYE info and i seem to have been given 2 odd tax codes. I was originally on 1250L last year as i worked 1 job and earned about £9000 a year. In April i got a slight pay rise putting me up to £9360. and then i took a tempory 3 month job in September where i'll earn a little over £6000 in the 3 months. But i'm still working my old job as well 1 day a week, for the 3 months, so only £360 a month. My 2 tax codes are now BRX and 738LX i can''t seem to find anything out about the 728LX code and what it means.

For anyone to work out your currant tax position you need to give the following details from your last payslips
Taxable pay to date
Tax paid to date
Week or month number
and advise if any taxable income not included on these payslips.

Jibber123

I was just looking to find out what tax code 738LX means. I was and have been for a number of years on tax code 1250L. My original job, the lower paid one, I only ever paid a small amount in deductions this was only NI I think. Since I took the temporary position they have been deduction almost half my earnings, which i thought was a bit high, but thought i would be able to claim it back if i'd over paid at the end of the tax year. Now it looks like they want more tax which seems a bit odd?

molerat

738LX simply means you are allowed to earn 1/12th of £7380 per month before paying tax - 738 = £7380, X = on a monthly 1/12th basis. The information requested above was to try and ascertain if that code was appropriate. From my experience HMRC make a complete dogs dinner of the mid year code changes.

Jibber123

Ok long term job only lists this months (month 7) tax not year to date, gross pay £711, PAYE tax £0 voluntary deduction £-360. I basically worked 39 hrs this month at £9/hr, which is £711-£360=£351. that's how much i get paid into my bank account

The other short term job i've been working, on my week 33 payslips it is YTD gross pay £4730.40, YTD taxable pay £4730.40 YTD tax paid £560 YTD NI £388.33
I work 24 hrs a week at £19.71 which is £473.04 and i pay £36.94 NI and £176.40 PAYE tax so i get paid £259.66 into my bank account. I don;t receive any other income that's not PAYE apart from a few pence interest on my current account each year.

I think they have taken something like 45% of my earning in tax and NI which seems high considering that my total earning for the year is going to be under £15,000 come next April?

chrisbur

Jibber123 wrote: »

Ok long term job only lists this months (month 7) tax not year to date, gross pay £711, PAYE tax £0 voluntary deduction £-360. I basically worked 39 hrs this month at £9/hr, which is £711-£360=£351. that's how much i get paid into my bank account

The other short term job i've been working, on my week 33 payslips it is YTD gross pay £4730.40, YTD taxable pay £4730.40 YTD tax paid £560 YTD NI £388.33
I work 24 hrs a week at £19.71 which is £473.04 and i pay £36.94 NI and £176.40 PAYE tax so i get paid £259.66 into my bank account. I don;t receive any other income that's not PAYE apart from a few pence interest on my current account each year.

I think they have taken something like 45% of my earning in tax and NI which seems high considering that my total earning for the year is going to be under £15,000 come next April?

Without knowing earnings and tax to date for first job cannot really help regarding your present tax position.
Regarding the second job is the tax code shown on the payslip BRX if that is the case then I would expect to see tax of £95.20 not £176.40 so perhaps better query that with your employer.
I assume that you know what the voluntary deduction is for.
You say earlier that " I was and have been for a number of years on tax code 1250L." That is very unlikely as L codes are changed every year.
I think that your best bet is to get all your payslips together to work out your correct pay and tax figures and as said earlier if on BRX check with your employer as BRX should result in tax at 20%.

Jibber123

I was told by my employer that they had made a mistake on my pay last month and the deduction was to correct that. I still got paid the correct amount into my bank account from that job but i'm starting to think it has effected my other job as that tax has jumped up now, or it could just be a coincidence. I have asked my employers accountant, again to confirm what exactly the deduction was for and she just said it was to correct and error at their end, nothing more.

unholyangel

Jibber123 wrote: »

I was told by my employer that they had made a mistake on my pay last month and the deduction was to correct that. I still got paid the correct amount into my bank account from that job but i'm starting to think it has effected my other job as that tax has jumped up now, or it could just be a coincidence. I have asked my employers accountant, again to confirm what exactly the deduction was for and she just said it was to correct and error at their end, nothing more.

39 * 9 = 351. So it would look like they have paid you for all the hours you did there and you had £0 in tax deducted from that wage.

Its only your second job (on the brx) that has had tax deducted but as chrisbur mentions, br should be 20% while 176.40 indicates a rate of 40% on a taxable pay of £441. At 20%, £176.40 would see a taxable pay of £882. Do you pay into a occupational pension at this job?

Jibber123

no it's only a temporary 13 week position due to end this week, so there is no pension contribution