Tax Codes 26 May 2022 at 1:47PM in Cutting tax 4 replies 91 views

DE_612183

Not sure if this is the right board but here goes.
Up until 2022 I was working through my own Ltd Company and paid tax on a Pension and my earnings via a Self Assessment.

No I am working via an Umbrella and have the following tax codes:

Umbrella Co - C391T
Pension - CK204X

To me that looks like my tax free allowance is now £5950 - which I don't understand as everything else is fully paid up.

Any ideas?

Thanks

Dazed_and_C0nfused

No, your tax code allowances are £1870 (£3910 less minus £2040)

You need to look at your Personal Tax Account and check how the CK204 code has been calculated.

DE_612183

Dazed_and_C0nfused said:

No, your tax code allowances are £1870 (£3910 less minus £2040)

You need to look at your Personal Tax Account and check how the CK204 code has been calculated.

yes - I just checked and the TFA is 1858 - I have no idea why that should be!

Could it be that as I haven't done the SA return for 2021-22 it's assumed that all the tax will be collected through employment this year, rather than paying the SA bill as I usually do?

Dazed_and_C0nfused

yes - I just checked and the TFA is 1858 - I have no idea why that should be!

If you look at the PAYE section of your Personal Tax Account you should be able to see a breakdown of how the CK204 tax code has been calculated 

DE_612183

I've gone back to HMRC and it's to do with their "assessment" of what tax I "could" "potentially" incur in the year - I've sorted it now and they have adjusted the codes back town 757 and 581 or something like that!