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Non-cumulative income
lovesavingmoney
Posts: 47 Forumite
in Cutting tax
My husband had a letter he’d underpaid tax for last year by about £140, and they were adjusting tax code to cover it. I think it’s 1216 or something now. But at the same time, they’ve changed his tax to non-cumulative. He spoke to them on chat and they’ve said that it will stay like that til next April, but he’s being taxed a lot more because of it. Is this right? Why can’t they change it back to cumulative now? Can anyone shed any light?
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Comments
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If it was cumulative now all the tax he owed from April 2021 to now would be taken in one go on his next payslip. Is that what you want?
If you post figures from his latest payslip, next pay days taxable pay, how often he is paid and the make up of his tax code (not just the end code number) it should be possible to say what would be deducted next pay day.0 -
Non cumulative means that the tax code will not operate retrospectively from the start of the tax year. In other words, the tax which will be deducted from now until April will be correct but the tax which should have been deducted on this code had it been in operation from April 2021 will not be collected- a review will be made after the tax year.
if the code was cumulative, all of the tax underpaid from April until now would be deducted in one go next month.0 -
How much lore tax is he paying?
If they are intending to collect £140 by April then it should be £20 a month extra.
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