Change of tax code

monstercookies17

Hi all,
My husband gets contribution based ESA since 2020 and does the maximum permitted work at 16hrs p/w minimum wage.
We've received tax bills for approx £300 which we've paid.
This morning, we've been notified through the app that his tax code has changed.
Employment from 1131N(used to claim Marriage Allowance but stopped it) to 563T
ESA from N/A to 693L

Can anyone explain what it means? Have looked online and it makes no sense to me.
TiA

Dazed_and_C0nfused

It means he will pay tax if his weekly taxable pay goes above ~£109.

DWP won't deduct any tax from his ESA.

Do you have an idea how much taxable ESA he will receive in the current tax year?

monstercookies17

Dazed_and_C0nfused said:

It means he will pay tax if his weekly taxable pay goes above ~£109.

DWP won't deduct any tax from his ESA.

Do you have an idea how much taxable ESA he will receive in the current tax year?

He gets £259 a fortnight ESA

Dazed_and_C0nfused

monstercookies17 said:

Dazed_and_C0nfused said:

It means he will pay tax if his weekly taxable pay goes above ~£109.

DWP won't deduct any tax from his ESA.

Do you have an idea how much taxable ESA he will receive in the current tax year?

He gets £259 a fortnight ESA

So the estimate HMRC have used ~£6930 is about right really

monstercookies17

Dazed_and_C0nfused said:

monstercookies17 said:

Dazed_and_C0nfused said:

It means he will pay tax if his weekly taxable pay goes above ~£109.

DWP won't deduct any tax from his ESA.

Do you have an idea how much taxable ESA he will receive in the current tax year?

He gets £259 a fortnight ESA

So the estimate HMRC have used ~£6930 is about right really

So does it mean in effect the ESA is his first "wage" but anything over £109 a week from his 2nd job is taxable? He gets approx £666 a month from paid work.

Dazed_and_C0nfused

monstercookies17 said:

Dazed_and_C0nfused said:

monstercookies17 said:

Dazed_and_C0nfused said:

It means he will pay tax if his weekly taxable pay goes above ~£109.

DWP won't deduct any tax from his ESA.

Do you have an idea how much taxable ESA he will receive in the current tax year?

He gets £259 a fortnight ESA

So the estimate HMRC have used ~£6930 is about right really

So does it mean in effect the ESA is his first "wage" but anything over £109 a week from his 2nd job is taxable? He gets approx £666 a month from paid work.

Yes, spot on.

monstercookies17

Thank you so much..been worried sick all day

Dazed_and_C0nfused

monstercookies17 said:

Thank you so much..been worried sick all day

Basically it's just ensuring he pays the tax (or most of it) during the year rather than getting a bill to pay after the end of the year.

monstercookies17

So it could be in response to us sending a letter in following a bill from 2020-2021 saying we've paid 2021-2022 so why then send that one when no details have changed?!