Confused about PAYE tax

flashg67

PAYE assumes the same amount (or near enough) is earned every month, so you don't end up owing (or being owed) a large amount of tax at any one point, and, as pointed out above, you'll pay 20% on what you earn every month over £1042, presuming a 1250L tax code.
If your tax code is any other number, it means there are other things - company car, tax arrears etc that are being collected via your tax code.
If you think it's wrong, call your tax office - I've found them helpful.
But no, the idea isn't to tax you too much then keep refunding every few months

wavefunction

flashg67 said:

PAYE assumes the same amount (or near enough) is earned every month, so you don't end up owing (or being owed) a large amount of tax at any one point, and, as pointed out above, you'll pay 20% on what you earn every month over £1042, presuming a 1250L tax code.
If your tax code is any other number, it means there are other things - company car, tax arrears etc that are being collected via your tax code.
If you think it's wrong, call your tax office - I've found them helpful.
But no, the idea isn't to tax you too much then keep refunding every few months

Ah ha, I finally understand now. Thank you!

molerat

wavefunction said:

Says 20T on my latest payslip.

wavefunction said:

My tax account(HMRC app) says that my current employment tax code is 1229LX and my tax free amount is £12,500.

You need to contact them to find out why the two differ

dctrgre

August is around the time of year repayments from HMRC go out in respect of the previous tax year, is that what is happening? Hopefully you have received an SA800 statement from
HMRC each year. (In simple terms, once HMRC have your P60 and P11D from employer they calculate your actual tax bill for the year, subtract what you’ve already paid via PAYE and make a refund/send a demand/adjust your tax code to sort out the difference.)


Re your current tax code, is 20T the code for 19/20 and 1229LX for 20/21?

wavefunction

dctrgre said:

Re your current tax code, is 20T the code for 19/20 and 1229LX for 20/21?

Only the latest 2 payslips are 20T.

wavefunction

molerat said:

wavefunction said:

Says 20T on my latest payslip.

wavefunction said:

My tax account(HMRC app) says that my current employment tax code is 1229LX and my tax free amount is £12,500.

You need to contact them to find out why the two differ

How do I contact them please?

xylophone

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees