Weird tax code

133 Posts

Hi, I recently moved jobs (I went from permanent employment to day rate contractor working under an umbrella company) and a couple of weeks ago I received a letter from HMRC saying my tax code has changed and went from S1146LX to S489LX.
I've found very little info about this new tax code; on the hmrc letter it just says my tax free amount is £4899, which is way lower than previously. It feels like I'm paying a lot more tax with and my (weekly) payslip is like £70 lighter.
Any idea what may be happening?
It's not the first time I have a similar situation; it seems to be happening every time I go from permanent to contracting or viceversa: my tax code changes, I pay more tax, then in May hmrc gives me a big fat refund.
I've found very little info about this new tax code; on the hmrc letter it just says my tax free amount is £4899, which is way lower than previously. It feels like I'm paying a lot more tax with and my (weekly) payslip is like £70 lighter.
Any idea what may be happening?
It's not the first time I have a similar situation; it seems to be happening every time I go from permanent to contracting or viceversa: my tax code changes, I pay more tax, then in May hmrc gives me a big fat refund.
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Give them a call.
There will be details of any tax code allowances and anything deducted which combined will result in the tax code allowances of 4899.
Could be as simple as you were paid by tow different employers in the same tax period so received two lots of allowances. Resulting in some tax having to be paid back.
Must be because I moved jobs.
Something like,
Personal Allowance £12,570
Less deduction to collect tax owed £7,671
Tax code allowances £4,899