1250lx

in Cutting tax
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What does the tax code 1250LX means? I think I am paying too much tax? Thanks
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Replies

  • 1250L is the emergency tax code, the same code most of the country has.

    The X at the end means it is applied on a special basis so only what you earn each week or month is considered, not the tax year as a whole.

    What income/jobs have you had in this tax year.
  • More info salary £5617.10 and income tax deductions of £1058.60. Does this seem right? Thanks
  • Penguin_Penguin_ Forumite
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    The x means you are being taxed on a cumulative basis & means that your tax will only be calculated on the payment being processed; it does not take into account the tax you have already paid in the tax year to date.
  • Non Cumulative, not Cumulative
  • More info salary £5617.10 and income tax deductions of £1058.60. Does this seem right? Thanks

    Yes. Or no.

    Not nearly enough info to know for certain.
  • Thanks need to query why I have been taxed on cumulative basis. Have been working for the Authority for past two years through an agency. I started full time with them in Sept The £5617.10 are two months salaries + £500 one off for recognition pay. P45 submitted in Sept so I should have been taxed correctly. If I do not do anything will I eventually get a refund? My tax code for this year is 1248L as I owe tax due to earning more than £1000 interest a yr. I still think I am being paid too much tax. Thanks
  • You aren't being taxed on a cumulative basis, the X signifies a non-cumulative basis.

    It is possible that this code is being used because you owe tax for the current tax year. You may have been paid twice in the same tax period, once by the agency and again by your new employer.

    Can you post the P45 figures? And confirm the date you were paid by your new employer (the payslip which shows £5617.10 taxable pay).
  • Tax code leaving date in p45 1248L
    Total pay to date £13,182.60
    Total tax to date £1387.40
    Leaving date 30.08.2019
    New employer 2nd Sep
    Basic pay £2601.92
    Basic arrears £2515.18 (was not paid for sep)
    Recognition £500
    Pay date 28/10/2019 £5617.10
    Income tax £1058.60
    NI £442.76
    Local gov pension £365.44
    These are the details. My tax code was 2019/2020 is 1248L. Thanks for your help.
  • edited 12 December 2019 at 9:54PM
    moleratmolerat Forumite
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    edited 12 December 2019 at 9:54PM
    The tax looks to be down to lumping Sept and Oct pay together and taxing as one month. I suspect the P45 has not been actioned so you are on the emergency tax code for only job and had other employment in the year. What happened in Nov ? Have you checked your on line tax account ? I would be having a frank conversation with HR / payroll
  • Tax code leaving date in p45 1248L
    Total pay to date £13,182.60
    Total tax to date £1387.40
    Leaving date 30.08.2019

    the leaving date may be shown as 30/08/2019 but the tax has been calculated to tax month 6, which covers payments made in the period 06:09:2019 to 05:10:2019
    Pay date 28/10/2019 £5617.10
    Income tax £1058.60
    NI £442.76
    Local gov pension £365.44

    Firstly ignore the pay to date. It looks like your pension contribution is made under the "net pay" scheme so your taxable pay is £5251.66, not £5617.10.

    If you had been paid using the 1248L tax code on a cumulative basis the tax due would have been £842.20, not £1058.60.

    You need to get in touch with HMRC and ask them to issue the 1248L tax code on a cumulative basis to your new employer so they can adjust your tax the next time they pay you.

    Note you do not get a tax "refund" but your next payslip will have a reduced tax deduction (for one month only).
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