Tax codes and marriage tax

hulkgti

Hi, I have a few jobs. My main one was on a normal tax code of just above 1257L. My other jobs have always been on BR, which is correct and how it should be. My husband applied for marriage tax allowance for me and now my codes have changed completely for 2 jobs (not really 2 jobs but contracted hours and bank hours are classed as separate). My main job is now 80MX and the bank hours are now D0X which means I now get taxed 40% on them! Is this correct? I thought I was supposed to be better off from claiming marriage tax. I'm gutted. Can I cancel it and get my old codes back? I can't afford to be worse off

[Deleted User]

You need to ring them to explain your situation- I have no explanation as to why this has been done. Don’t cancel the marriage allowance transfer - why should you? 

How much do you earn at each job?

Dazed_and_C0nfused

I wonder if the tax codes set at the start of the year (1257L and BR?) were based on lower income and receipt of Marriage Allowance has resulted in a recalculation and brought to light the fact that insufficient tax was being paid earlier in the (tax) year?

And if the D0 code is correct it's likely that Marriage Allowance will be cancelled after the tax year ends when HMRC review things and liability at higher rate is established.

[Deleted User]

Dazed_and_C0nfused said:

I wonder if the tax codes set at the start of the year (1257L and BR?) were based on lower income and receipt of Marriage Allowance has resulted in a recalculation and brought to light the fact that insufficient tax was being paid earlier in the (tax) year?

And if the D0 code is correct it's likely that Marriage Allowance will be cancelled after the tax year ends when HMRC review things and liability at higher rate is established.

Could be although the 80MX code confuses the issue somewhat.

Dazed_and_C0nfused

A few years ago HMRC started to collect new underpayments in the tax year they arise in rather than push them into the following years tax code so maybe there is a largeish underpayment with only 3-4 months for it to be collected in meaning a very large tax code deduction?

Could be lots of other things though 😉

hulkgti

I'm pretty sure I haven't underpaid tax. I earned under 40k last year and will be just over this year so not near the 50k cut off.

Dazed_and_C0nfused

Something doesn't seem quite right then.

It might be worth you checking your Personal Tax Account to see how much HMRC have estimated your taxable earnings from each job.

You can compare this to the taxable pay on your latest payslips and calculate what you think it will be by the end of the tax year to see how it compares.

[Deleted User]

hulkgti said:

I'm pretty sure I haven't underpaid tax. I earned under 40k last year and will be just over this year so not near the 50k cut off.

So no reasonable explanation then. Phone at 8am - you should get through relatively easily.

hulkgti

Thank you all! Just noticed that they had quadrupled the estimated earnings on one of my jobs (I wish!) I've put it back to what it was so fingers crossed it will now sort itself out. I had a right old panic -lol