Tax code confusion

curtis122

Martin told us tax codes are our responsibility to check and make sure is right, I understand the basics of what the numbers and codes are but I am just so confused as to why HMRC change them as they do. 

A basic brief, I work in temporary roles so I work for 3/6 months then may not be working for a month or more and then back working again for a short while type thing. Most years I tend to average the same in regards to amount of earnings from this. I have a BTL and that averages out the same, income, deductions every year. I have enough savings where it is over the interest limit so will pay extra tax on this but again its roughly the same every year. Pension wise I pay into the normal workplace pension, I don't make any more payments than what comes out my pay and have no private pension.

I finished my last job early Dec 2022 and started a new job Feb 2023, my first payslip came through in March with tax code K254 X i had to look this one up as I had no clue what a K was and HMRC states "The letter K is used in an employee’s tax code when deductions due for company benefits, state pension or tax owed from previous years are greater than their Personal Allowance." I have no clue why I would suddenly be on this tax code?  I've never owed tax, Its always been the case HMRC have had to pay me tax back when I've done my tax return even if just a bit. Then on my April Payslip I see I'm on 561L which is a lot less that the full year allowance. 

I'm utterly confused, I know I can ring HMRC but being at work all week its hard for me to call them but will when I can and to be honest the last time I called them and getting through after 35 mins waiting, I never got anywhere much, I think it was last year or the year before I was for some odd reason dumped on an emergency tax code for several months and called them to find out why, the person I spoke to did not really know, I had a lot of umms and as I happened to mention my tax return she just said it will be readjusted when you do that so none the wiser as to what made them put me on that code for so long back then. So even if I ring them unless you get the right person I may still not really have a clue.

I don't really know what I'm asking for by posting this, but for anyone that has any better knowledge of tax codes and why HMRC do things, does anyone know why this may be as its seems wrong to me. I feel I'm being done for lots of tax.

eskbanker

Do you use the online personal tax account facility?  That should show how your code has been calculated at your leisure, without having to make time-consuming phone calls:

https://www.gov.uk/personal-tax-account

TadleyBaggie

It's very common to end up on a "K" code when changing jobs, it's happened to me twice. HMRC most likely think you are employed by both the old and new companies.

curtis122

eskbanker, I've literally just been on it to try and find that area that shows you the break down for your tax code. Its looks like they have reduced my tax allowance by taking off my deductions they think will be for this year, based on last years deductions. I must have had a slightly better year last year than I thought. The K one was the the most confusing, I would have thought there was a big enough gap in-between jobs for them to process the leaving of one job properly and starting another correctly.

sheramber

curtis122 said:

eskbanker, I've literally just been on it to try and find that area that shows you the break down for your tax code. Its looks like they have reduced my tax allowance by taking off my deductions they think will be for this year, based on last years deductions. I must have had a slightly better year last year than I thought. The K one was the the most confusing, I would have thought there was a big enough gap in-between jobs for them to process the leaving of one job properly and starting another correctly.

That depends on your  previous employer notifying HMRC that you have left, which is not always done promptly.