Weird tax code 22 November 2022 at 12:02PM in Employment, jobseeking & training 5 replies 236 views

GiantTCR

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. 

TadleyBaggie

This happened to me a couple of times when changing jobs, seems HMRC often think you are still working at the old employer.

Give them a call.

GiantTCR

TadleyBaggie said:

This happened to me a couple of times when changing jobs, seems HMRC often think you are still working at the old employer.

Give them a call.

Yeah, it happened before, and it all sorted itself out when hmrc do their checks at the end of the financial year. Only this time I can't really wait that long and then get a refund. I'll phone them up.

Dazed_and_C0nfused

You need to read the rest of the tax code letter to understand why it's S489L.

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.

GiantTCR

Dazed_and_C0nfused said:

You need to read the rest of the tax code letter to understand why it's S489L.

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.

Yeah the letter doesn't say anything useful. It says what S means, what 489 means and what L means but it doesn't explain WHY my tax code has changed from what I had before.

Must be because I moved jobs.

Dazed_and_C0nfused

GiantTCR said:

Dazed_and_C0nfused said:

You need to read the rest of the tax code letter to understand why it's S489L.

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.

Yeah the letter doesn't say anything useful. It says what S means, what 489 means and what L means but it doesn't explain WHY my tax code has changed from what I had before.

Must be because I moved jobs.

What abou the front page of the letter?

Something like,

Personal Allowance £12,570
Less deduction to collect tax owed £7,671
Tax code allowances £4,899