K Tax Code

Mjmollo

I’m confused about an adjustment to my tax code and was hoping someone could provide a simple explanation.

I initially expected my adjusted net income to be circa £112k for the 2023/2024 tax year and had a tax code of 946T.

I was fortunate to receive a promotion in August and anticipate this will increase my adjusted net income to circa £145k for the 2023/2024 tax year.

I updated my estimated gross earnings with HMRC and have been issued with a revised tax code of K821X with effect from 24 September 2023.

A significant proportion of my estimated earnings (£52.5k) is variable (equity and bonus).

My gross base salary will equate to £8,250 per month (after the deduction of pension contributions - salary sacrifice) and I have taxable benefits of £168.10 per month. I’m trying to figure out what this means for my take home salary. I did try to use a salary calculator entering K821X as the tax code, but the figures quoted appear to replicate what I’d receive If I had a standard 1257L tax code.

Can anyone enlighten me as to what this will mean for my regular monthly take home salary?

Dazed_and_C0nfused

This calculator is simple to use and should definitely be accurate!

http://payecalculator.hmrc.gov.uk/PAYE0.aspx

Flugelhorn

isn't a code with an X in it an one-off non cumulative thingy?  

I used to have a K code (without the X I think ) - they tended to treat it as "we'll sort it all out later when you do self assessment"

Dazed_and_C0nfused

Flugelhorn said:

isn't a code with an X in it an one-off non cumulative thingy?  

I used to have a K code (without the X I think ) - they tended to treat it as "we'll sort it all out later when you do self assessment"

Yes, the X means the code should be operated on a non cumulative basis, looking at the pay in each pay period in isolation and ignoring what has been earned earlier in the tax year.

Mjmollo

Thank you Dazed_and_C0nfuzed and Flugelhorn, super helpful.

Also wanted to give Dazed_and_C0nfuzed a special shout out, this is the second time I’ve asked a income tax question and on both occasions you have provided speedy guidance, thank you again!