Tax codes - question

consumers_revenge

Hi,
This is probably really easy.
Why it it, when I've changed jobs, that both times my tax free limit has gone DOWN (and each new job has been for better wages)
The form witters on about
'due to an in year adjustment' we think you will owe hmrc £*** so have lowered you personal tax code to 1069L
Im PAYE and always have been. Surely my code shouldnt change....I just pay more tax?
Dont understand????
Thanks.

Dazed_and_C0nfused

You have probably, for tax purposes, had two jobs at the same time and owe tax as a result.

This is not uncommon when you change jobs as each employer's pays you in the same tax period so you get two lots of tax code allowances when only one is actually due.

But it's all guesswork without more detail.

consumers_revenge

deffo separate job. stop/started on different dates.
unsure what else details I can give?
surely under PAYE you would just pay more tax on anything over the allowance?

Dazed_and_C0nfused

I think you may find you did have two jobs at the same time for tax purposes.

Have you got your final payslip from the old job and first payslip from your new job?

These should have a tax period on or pay date, for example we are currently in tax month 10 (6 November to 5 December).

Did you hand your P45 from the old job to your new employer in time for the new employer to use it on your first pay day?

consumers_revenge

They did have my P45 in time.
But I did get paid from both my old and new company in october so that may be it? I paid tax on both salaries though and got taxed on both. But as you say......maybe from tax purposes point.

Dazed_and_C0nfused

That is a little odd then, normally of you are able to hand your P45 in to your new employer on time then you pay more tax on the first payment from your new employer and there would be no need to change your tax code.

Did the new employer use tax code 1250L and if so was it on a cumulative or non cumulative basis?  Non cumulative could be shown on payslips as 1250LX or 1250L W1/M1 rather than just 1250L.

consumers_revenge

It says culmulative on my old wage slips
p45 and all wage slips up to leaving say 1250L new company are showing the tax code from hmrc used.
Hmmmmmmmmmm

consumers_revenge

latest one says 1025L m1

Dazed_and_C0nfused

I don't think you can answer this without posting the details from the payslips for both jobs you had in October (NI related info isn't needed).

And does the tax code 1025L have any other deductions apart from the one you originally mentioned (due to an in year adjustment).