Tax free allowance

rasputinny

Hi. A couple of months ago I got informed my tax free allowance for FY 21/22 was now 15k rather than the default 12.5k, because of my business mileage in FY 20/21. When do I see the benefit of that? My tax deductions in my pay packet haven’t changed. I’m hoping I get a credit to my bank account at some point - is that correct? I couldn’t see an answer from logging into my .gov account. Thank you!

molerat

What tax code is showing on your pay slips and in your on line tax account ?

rasputinny

Thanks. It’s saying 1491L from Nov 2021 (and 1478L from April 2021)

rasputinny

And payslip says 1491L too

[Deleted User]

If it went straight on to to 1478L from April you would already be receiving the tax benefit from that point. A change to 1491L in November 2021 would further reduce your tax by around £2 per month (assuming a basic rate taxpayer), backdated to April in the first salary after that November change.

rasputinny

Thanks Purduoaten2. My tax deduction (and take home) seems to be unchanged for the last 19 months, approx 950 a month tax all in, including since I was notified of the change in my tax free allowance 2 or 3 months ago so it doesn’t feel like I’m seeing the benefit. In fact it looks like the tax deduction increased over so slightly in April last year. I’m not any clearer but perhaps I just have to trust I’ll pay the right amount whatever that is 

molerat

With a 1491 tax code as a 20% taxpayer you are paying £39 per month less tax than on the standard 1257 code.

rasputinny

Ok cool. I’m at 40%

Dazed_and_C0nfused

I suspect you getting a little confused with how HMRC deal with these things.

Any tax relief due for 2020:21 will be received via your 2020:21 tax code or a calculation for 2020:21 HMRC will send finalising the position for that tax year.

You never get mileage allowance relief for one tax year in the tax code of a different tax year.

The change to your 2021:22 tax code is to provisionally allow tax relief for 2021:22, on the assumption you will claim a similar mileage allowance again in this tax year.