Tax code is wrong, no help at HMRC

Dazed_and_C0nfused

Without some payslip details it's impossible to know.  

dethmart

Looks like I'll have to give them a ring.

Thanks for the advice though..

molerat

What does your on line tax account show as to the make up of the tax code - there will be a breakdown of the reduction.

unforeseen

Dazed_and_C0nfused said:

1250L is the emergency tax code.

M1 simply means the code is being operated on a non cumulative basis.  Which would be appropriate of the op had been paid by two employers in the same tax period.

Absolute rubbish. 
Emergency tax codes are
1250 W1
1250 M1
1250 X
Note the lack of L after the number

Dazed_and_C0nfused

1250 is not a valid tax code as it is missing the suffix (or prefix).

The W1/M1/X relates to how the tax code is operated (non cumulative), which is separate from the tax code itself.

According to HMRC's own guidance (for the forthcoming tax year),

For 2021 to 2022 the basic Personal Allowance will be £12,570 for the whole of the UK. The threshold (starting point) for PAYE is £242 per week (£1,048 per month). The emergency code is 1257L for all employees.

[Deleted User]

unforeseen said:

Dazed_and_C0nfused said:

1250L is the emergency tax code.

M1 simply means the code is being operated on a non cumulative basis.  Which would be appropriate of the op had been paid by two employers in the same tax period.

Absolute rubbish. 
Emergency tax codes are
1250 W1
1250 M1
1250 X
Note the lack of L after the number

The emergency code was always regarded as the being the ‘normal’ tax code - currently 1250L. - way back from when I started in what was the Inland Revenue over forty years ago and, I am sure well before. This is what one was taught on ‘day one’. There were emergency codes and Week 1, Month 1 codes. I wish I had a pound for the number of times I heard the phrase - putting you on the emergency code ( note ‘the’ emergency code) but on a week 1 or Month 1 basis. Regrettably,  through years of misinformation and the public’s inability to countenance that an ‘x’, or M1, W1 after your code could be anything other than an ‘emergency code’ HMRC has given in and now freely employs the same terms. So - not rubbish at all. The terminology has just changed.

Now - have a look at the 2021/22 guide for employers attached.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/957796/P9X_2021.pdf

The emergency code is 1270 L for all employees is clearly stated in the third sentence. Note the ‘L’ as suffix is included.  Most employers would appear to understand this.

unholyangel

[Deleted User] said:

unforeseen said:

Dazed_and_C0nfused said:

1250L is the emergency tax code.

M1 simply means the code is being operated on a non cumulative basis.  Which would be appropriate of the op had been paid by two employers in the same tax period.

Absolute rubbish. 
Emergency tax codes are
1250 W1
1250 M1
1250 X
Note the lack of L after the number

The emergency code was always regarded as the being the ‘normal’ tax code - currently 1250L. - way back from when I started in what was the Inland Revenue over forty years ago and, I am sure well before. This is what one was taught on ‘day one’. There were emergency codes and Week 1, Month 1 codes. I wish I had a pound for the number of times I heard the phrase - putting you on the emergency code ( note ‘the’ emergency code) but on a week 1 or Month 1 basis. Regrettably,  through years of misinformation and the public’s inability to countenance that an ‘x’, or M1, W1 after your code could be anything other than an ‘emergency code’ HMRC has given in and now freely employs the same terms. So - not rubbish at all. The terminology has just changed.

Now - have a look at the 2021/22 guide for employers attached.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/957796/P9X_2021.pdf

The emergency code is 1270 L for all employees is clearly stated in the third sentence. Note the ‘L’ as suffix is included.  Most employers would appear to understand this.

You normally find people use "emergency tax code" as if it's synonymous with "I don't know what my tax code means".  They also understand it to mean theyre somehow paying "emergency tax". Which, of course, doesn't exist. 


I agree wholeheartedly that most people, even those in the industry who should know better (not just HMRC), use it wrongly. I out this down to a worsening of pay terms in those jobs. Pay peanuts and you'll get monkeys. 

[Deleted User]

From HMRC Internal Manual - PAYE guide:

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye11015

Emergency Code

The emergency tax code is a number followed by suffix L. The number is the Personal allowance without the final figure for example the emergency code for 2019-20 is 1250L. The emergency code can be used on a cumulative or non-cumulative basis (week 1 or month 1).

chrisbur

dethmart said:

I'm roughly about £100 a month down, is that a lot?

On the tax codes you have given to be paying an extra £100 would indicate that you are paying tax at 40%.  If that is the case then if you did have an overlap of payments between employers you would have received an extra month of tax allowance and an extra month of 20% tax allowance.  I have not done the sums exactly but this would put you quite a bit  under taxed.
Easiest way to check this is to look at your P45 part 1A or last payslip in old employment to see what the month number is and compare that to the month number on your first payslip with your new employer.  If these month number are the same then you have an overlap and have under paid tax.

unforeseen

purdyoaten2 said:

From HMRC Internal Manual - PAYE guide:

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye11015

Emergency Code

The emergency tax code is a number followed by suffix L. The number is the Personal allowance without the final figure for example the emergency code for 2019-20 is 1250L. The emergency code can be used on a cumulative or non-cumulative basis (week 1 or month 1).

I quoted from the gov.uk site
Www.gov.uk/tax-codes/emergency-tax-codes

ETA
Going up one level at that location, the emergency part of the tax code is W1, M1 & X

If your tax code has ‘W1’ or ‘M1’ or ‘X’ at the end
These are emergency tax codes

So the allowance is immaterial