Income tax

lyn7543

Hi wondering if anyone can help. The tax code for my second job is SD1 X and I am being taxed 40% on the income. However I do not reach the higher tax banding rate. Could I change this? 

Dazed_and_C0nfused

Yes.  A good starting point would be to check your Personal Tax Account on gov.uk to see how HMRC have estimated your income from each job.

chrisbur

The D1 code is used when tax is to be taken at the highest rate 45% UK and I think a bit higher for Scotland.  Have you had anything from HMRC about this.  As it is being applied on a non-cumulative basis this suggests that it was changed part way through the tax year, possibly to correct an under-deduction, could only check for that if you could give taxable pay and tax paid to date for both jobs and any other taxable income.
Your personal tax account might show the reason, also I believe shows what HMRC have as your estimated earnings for the year. Have you looked on there.
https://www.gov.uk/personal-tax-account

EDIT  See next post for correct SD1 tax rate

Dazed_and_C0nfused

SD1 is actually the second Scottish rate above the basic rate, so at the moment it's 41%.

SD0 = 21%
SD1 = 41%
SD2 = 46%

Tax doesn't have to be taxing. But it often is!!

lyn7543

Could I change my tax code to work on a cumulative basis? 

chrisbur

lyn7543 said:

Could I change my tax code to work on a cumulative basis? 

To the best of my knowledge only HMRC can change the tax code and how it is applied.  If it were changed to a cumulative basis from the next payday the tax system would try to take tax backdated to the start of the tax year.  Have you been able to establish why this code has been used?

lyn7543

I haven’t unfortunately. I will contact HMRC again and check.