Personal tax code query

dunmol

I recently changed jobs and got paid twice in March. 

I received a coding notice changing my  22-23 code to 850L from
125L yo account for owing £813. 

Looking at my pay slips that makes sense. 

However plugging in the new codes into a salary calculator my take home pay differs £135 a month. 

Why wouldn’t the take home pay differ £67.75 , the 813 divided by 12?

Just looking at these figures I’ve realized it’s double what they tell me I owe… 

Grumpy_chap

Is the tax code notice showing that you owe £813, or owe tax on £813?  (£160 for basic rate tax payer.)

Dazed_and_C0nfused

I received a coding notice changing my 22-23 code to 850L from 125L

Did you mean 1257L?

Are you a higher rate taxpayer?

dunmol

Grumpy_chap said:

Is the tax code notice showing that you owe £813, or owe tax on £813?  (£160 for basic rate tax payer.)

Owe £813, so tax on £4066 I believe. 

dunmol

Sorry , 1257L and yes, higher rate tax payer. 

Dazed_and_C0nfused

A tax code deduction of 4066 would mean additional tax of £1626.40 would be paid by a higher rate taxpayer.

If you owe £813 and will be a straightforward higher rate payer on your PAYE income then the deduction should be just 2033.

Extra 40% on £2,033 of your pay is £813.

Might be worth checking your Personal Tax Account to see if your estimated earnings need updating for 2022:23?

dunmol

Interesting. My estimated income for 22-23 is only about a third of what it should be. I’ve updated this on my personal tax account but not sure what if any effect this will have on my tax code ?

Dazed_and_C0nfused

dunmol said:

Interesting. My estimated income for 22-23 is only about a third of what it should be. I’ve updated this on my personal tax account but not sure what if any effect this will have on my tax code ?

I think your code is reviewed and if it makes a difference you will get a new code.

Maybe worth checking in a couple of days to see if anything's changed?

dunmol

Also noticed they have removed the extra I get every year for personal pension payments. Think I’ll give them a call…

Dazed_and_C0nfused

dunmol said:

Also noticed they have removed the extra I get every year for personal pension payments. Think I’ll give them a call…

I think you are getting ahead of yourself.

If your existing tax code was assuming you were a basic rate payer then no pension relief would be due.

Now you have updated your estimated earnings I would expect the underpayment deduction to be updated and any relief due for personal pension contributions to be included (based on the earnings figure you have used and whatever pension contribution info HMRC hold).

dunmol

All understood. I’ll be patient !