Explaining a tax code

spscot

I am really confused between HMRC and my employer on this.

In 2019/20 my Tax Code was S1305M

My understanding of that is that I pay tax in Scotland,  the first 13,050 is tax-free and my wife is retired but I have had some of her allowance transferred from Marriage
allowance.

So that is fine, but I received a bonus this year, not a huge amount but the amount of tax I paid was higher than it should have been.  The reason given for this is that my employer states they were told by HMRC when my tax code changed to S1305M to use a week1/month1 basis rather than cummulative.  I have managed to speak to HMRC and they say that if that was the case my tax code would have M1 or W1 added to it.  Which is has not.

So my employer says HMRC did request this, HMRC says they didnt   Does anyone know what or who is right here?

Thanks

Dazed_and_C0nfused

Why not give us some figures?

How much was the bonus and how much extra tax was deducted?

What does your final payslip show as your taxable pay for the year and tax deducted?

Finally your tax code is just a provisional attempt to collect the correct amount of tax.  If any adjustment is required HMRC sort that after the tax year ends.

For example Marriage Allowance does not entitle you to any extra allowances, it gives you a £250 deduction of your tax liability.  But to ensure you get the benefit of it during the year HMRC have to add extra tax code allowances to ensure you get the £250 benefit.