Tax Code

meren

My new tax code is 14LX.
It's the "Adjustment to Rate Band" of £1824 that I was interested in as I'll have to pay tax on this.
When I run the numbers through a spreadsheet it shows I'll end up paying around £365 more in tax than I should. £365 is the amount of tax payable on £1824 for a basic rate taxpayer
I think I'll badger HMRC about it and see what comes of it.

molerat

Quite often with mid year changes like this the "how your tax code is made up" numbers are fudged to end up with the correct answer, they often make no sense but the final number is right.

With an X suffix code that £1824 adjustment will result in £30 tax per month for the next 4 months, not the full £365, so £120 which is close to the tax on 4 weeks of pension and may be due if it is a catch up for a prior month before the code was implemented.