Quick Self Assessment / tax code question

KiKi

Hi all, hoping someone can advise (in simple language that I understand!).

My only income is through my one employed job, paid by PAYE.  I also complete a tax return.  I completed it for the last financial year a few weeks ago.  Shortly after I received notification from HMRC that my tax code had changed.

On the HMRC website, it lists my paid employment, then says my tax code is 1229L. 
It then lists 'non-coded' income separately of £226.

On my tax return last year, I had interest coming to £226 exactly, so I assume this is what this refers to - does that sound right?  Is it this amount which is taking my tax code down (hence the notification right after I did my tax return)?  Or is this just 'information' on my page which doesn't affect my code at all?

The only other thing that I think could affect my code is that I receive a small medical benefit through work (worth £272 over the whole year) but this is taxed through PAYE.  Could it be this that's affecting my code, even though it's sorted through PAYE?  I do put this on my Self Assessment form from my P11D.

I would *much* prefer to have the normal tax code, then have all charity payments, interest income etc dealt with via the self assessment; I find it much cleaner, and I'm much more able to check whether it's accurate.  But right now, I'm not sure if that's what's bringing my code to 1229!

Thanks if you understood that - and I'm no financial expert, so all plain language appreciated, thank you!

KiKi

Dazed_and_C0nfused

You should be able to see a detailed breakdown of your tax code somewhere on your Personal Tax Account.

I don't know what you mean by this

The only other thing that I think could affect my code is that I receive a small medical benefit through work (worth £272 over the whole year) but this is taxed through PAYE

If it is reported on a P11D then it will normally be a tax code deduction and those figures match your tax code, although this could be a coincidence.
Personal Allowance 12,570 less medical benefit 272 = tax code allowances 12,298
Tax code Allowances 12,298 will usually result in tax code 1229L

Non coded income will be the interest but normally only impacts your tax code if you have adjusted net income greater than £100,001 (the non coded income is part of your (estimated)  adjusted net income).

I don't understand this either.  In view of the comments below you seem to have ignored the option, near the end of the return, to notify HMRC that you don't want your tax return data used in reviewing/updating your tax code.  It might not have made much difference as P11D company benefits would still be included in your tax code but you would have avoided the non coded income confusion.

I would *much* prefer to have the normal tax code, then have all charity payments, interest income etc dealt with via the self assessment; I find it much cleaner, and I'm much more able to check whether it's accurate.  

KiKi

Dazed_and_C0nfused said:

You should be able to see a detailed breakdown of your tax code somewhere on your Personal Tax Account.

I don't know what you mean by this

The only other thing that I think could affect my code is that I receive a small medical benefit through work (worth £272 over the whole year) but this is taxed through PAYE

If it is reported on a P11D then it will normally be a tax code deduction and those figures match your tax code, although this could be a coincidence.
Personal Allowance 12,570 less medical benefit 272 = tax code allowances 12,298
Tax code Allowances 12,298 will usually result in tax code 1229L

Non coded income will be the interest but normally only impacts your tax code if you have adjusted net income greater than £100,001 (the non coded income is part of your (estimated)  adjusted net income).

I don't understand this either.  In view of the comments below you seem to have ignored the option, near the end of the return, to notify HMRC that you don't want your tax return data used in reviewing/updating your tax code.  It might not have made much difference as P11D company benefits would still be included in your tax code but you would have avoided the non coded income confusion.

I would *much* prefer to have the normal tax code, then have all charity payments, interest income etc dealt with via the self assessment; I find it much cleaner, and I'm much more able to check whether it's accurate.  

On your first point that you didn't know what I meant: I believed that the medical benefit which is a taxable benefit, was deducted via PAYE, so I just thought I paid slightly more tax - ie, my tax code would be the same but my tax percentage would be a bit higher (it's a new benefit so I've not experienced the impact before now). I didn't realise the tax is paid by reducing my personal tax allowance and therefore changing my code.  Thank you for explaining that.

On your second point I did not ignore anything like that - I did specifically say I didn't want want this to be used to adjust my tax code where there were relevant boxes to do so.  (There have been times in the past when I've ticked that explicitly for charity payments and HMRC ignored it and changed my code as a result and I had to call and get it adjusted, so I'll check with them anyway.)  I wonder why they list that as income, then, on the code page, if it doesn't affect anything.  I couldn't see a breakdown of my tax code and the reasons, but I'll go back in and check more thoroughly, thank you (EDIT - found it, there was a link on the side bar, and yes, the lower code is due to the medical benefit).

Thanks for your response and help.

KiKi