Tax Codes 2023

DE_612183

ok, thanks for the comments guys - I will check out the tax account

[Deleted User]

Jeremy535897 said:

So the figures above are not going to be far out. A K code of 6344 applied to a pension of £8,500 makes no sense, as they can only take 50% of the pension. That would give the following result:
Tax due on £125,000 + £8,500 =£133,500: £37,700 @ 20% = £7,540 plus £87,440 @ 40% = £34,976 plus £8,360 @ 45% = £3,762, total £46,278
Tax collected on job £125,000 @ 20% = £25,000 plus £8,500 @ 50% = £4,250 totalling £29,250 resulting in an underpayment of £17,028
Definitely look at your personal tax account.

I think that you may have applied 45% in error from 125140 (when the personal allowance taper is exhausted). 

Jeremy535897

That's correct for 2023/24, the year the code is for?

[Deleted User]

Jeremy535897 said:

That's correct for 2023/24, the year the code is for?

Of course! ‘2023’  tax code got me!

DE_612183

ok, so couldn't get through to HMRC last night - so used online to update my expected income from main job to < 100k ( which may be ok as I'm contracting so don't really know income for full year anyway ).

Checked today and tax codes are now: C565T and C691L which looks about right.

Jeremy535897

That may lead to a substantial underpayment if your income does go over £100,000.