📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Working from home due to coronavirus

Hi,
I've been working from home since March so decided to take advantage of the tax relief.  My Tax code was changed a couple of days after submitting.
Is the tax relief backdated or does it only apply from the date of application?
Thanks in advance.

Comments

  • Providing your tax code is on a cumulative basis then it is automatically backdated.

    1281L is a cumulative tax code
    1281LX is non cumulative

    You will see a larger adjustment the first time your employer used the new tax code and then small reductions thereafter to 5 April 2021.


  • cookster
    cookster Posts: 38 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Providing your tax code is on a cumulative basis then it is automatically backdated.

    1281L is a cumulative tax code
    1281LX is non cumulative

    You will see a larger adjustment the first time your employer used the new tax code and then small reductions thereafter to 5 April 2021.


    Thanks, new Tax Code is indeed 1281L.
  • If you are paid monthly and the new code is used for the first time in the tax month to 5 February you will see a c£50 tax reduction on that payslip and then c£5/month in each of the next two months.

    Assuming you have paid at least that amount of tax to start with and the code was previously 1250L.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.5K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.9K Spending & Discounts
  • 244.5K Work, Benefits & Business
  • 599.8K Mortgages, Homes & Bills
  • 177.2K Life & Family
  • 258.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.