K Tax Code

Worpy1

Hello 
Looking for some advice, explanation please 

My salary at my last job was £94.5k per annum and I was given a bonus of £14.5k in March. In June HMRC wrote to me to say I needed to complete a self assessment which I did and they then confirmed I didn't have to make any payments

I started a new job on 26th September with a salary of £115k per annum. I was paid on 18th October which included 26-30 September and the full month of October, so slightly more than I will receive every month going forward.

I have now received notification of a change in tax code to K439X and my tax free amount has been changed to minus £4,403 ??

I had an underpayment of £189 in a previous year and they estimate I have underpaid £1,660 in tax this year.

I fully admit I struggle to get my head around the UK tax system but I am aware that my bonus in March plus salary increase have taken me over thresholds but I don't fully understand how I have gone to a minus figure for my personal allowance and I am worried if my tax free amount is now a minus how much will they deduct next month from my pay. I am planning to add additional monies to my pension but it has only just been set up with my employer so I haven't got round to it yet, but I am not sure this would make much difference to my next salary payment ?


I am employed and always have been, I don't have any other income and my only assets are my flat and workplace pension which at 43 I haven't touched yet.

Dazed_and_C0nfused

My salary at my last job was £94.5k per annum and I was given a bonus of £14.5k in March. In June HMRC wrote to me to say I needed to complete a self assessment which I did and they then confirmed I didn't have to make any payments

Are you sure you completed the return correctly or had you made some very large RAS pension contributions?

The K code will be the result of losing your Personal Allowance and a deduction to collect the tax owed from a prior year and an attempt to collect extra tax this year relating to the period when you had some Personal Allowance in your tax code.

Tax codes are always provisional and the actual position will be resolved via your next tax return.

You can use this calculator to understand the impact on next month's wage.

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