Tax code issues

jojo_1982

When I started my current job (Dec) I was still employed by my old place of work while I used up some annual leave. I was put on a CBR tax code at new work. When I left my old job officially I informed HR at my new work but my tax code was never changed so I was paying too much tax from Jan to April (I assume). I called HMRC last month and they changed my code but now I've received Septembers payslip I can see it was changed to C1169L.
I can't figure out why I am getting less tax free allowance than standard. And how I get back the tax I overpaid from the 23/24 tax year. Any ideas?

Dazed_and_C0nfused

jojo_1982 said:

When I started my current job (Dec) I was still employed by my old place of work while I used up some annual leave. I was put on a CBR tax code at new work. When I left my old job officially I informed HR at my new work but my tax code was never changed so I was paying too much tax from Jan to April (I assume). I called HMRC last month and they changed my code but now I've received Septembers payslip I can see it was changed to C1169L.
I can't figure out why I am getting less tax free allowance than standard. And how I get back the tax I overpaid from the 23/24 tax year. Any ideas?

What is the breakdown of the C1169L code?

The refund for 2024-34 will be done automatically (assuming you don't have to file a Self assessment) and would normally be issued any day now.

jojo_1982

I don't know how to find out the breakdown of it - my payslips don't say anything.
That's good - I'll look out for that soon thanks

p00hsticks

jojo_1982 said:

I don't know how to find out the breakdown of it - my payslips don't say anything.
That's good - I'll look out for that soon thanks

@jojo_1982 Set up a personal tax account and it should show a breakdown there
Personal tax account: sign in or set up - GOV.UK (www.gov.uk) 

molerat

p00hsticks said:

jojo_1982 said:

I don't know how to find out the breakdown of it - my payslips don't say anything.
That's good - I'll look out for that soon thanks

@jojo_1982 Set up a personal tax account and it should show a breakdown there
Personal tax account: sign in or set up - GOV.UK (www.gov.uk) 

How it is made up will be under - PAYE - Check current tax year - right hand side under Annual amounts - What makes up your tax-free amount

jojo_1982

Thanks so much. I've logged in to that and can see there's a deduction of £880 for untaxed interest on savings and investments.
I assumed I would have to report any interest earned at the end of the tax year and then pay interest on this. Does my tax code mean I won't have to do that?

Albermarle

jojo_1982 said:

Thanks so much. I've logged in to that and can see there's a deduction of £880 for untaxed interest on savings and investments.
I assumed I would have to report any interest earned at the end of the tax year and then pay interest on this. Does my tax code mean I won't have to do that?

You only have to report savings interest if;
1) You already fill in a self assessment return for other reasons.
2) Your interest is over £10K

Otherwise the savings provider will report your interest to HMRC, who will deal with it automatically.

molerat

Does the employment page show the correct estimated annual income for your current job ?

Will this year's savings interest be in excess of £1000 or dividend in excess of £500 ?

MrsM's dividend estimate this year was way off of my estimate - taking it from under £500 to way over - so you need to check and adjust that if relevant.

jojo_1982

I expected my interest to be over 10k for the year, but with how interest rates are going down there's a good chance I'll be under. I'll keep an eye on that.
With joint savings accounts, is it taken that half of that interest is apportioned to me and half to my husband?
My estimated annual income is correct (apart from it doesn't show an uplift in salary yet because that only started from today)

Dazed_and_C0nfused

jojo_1982 said:

I expected my interest to be over 10k for the year, but with how interest rates are going down there's a good chance I'll be under. I'll keep an eye on that.
With joint savings accounts, is it taken that half of that interest is apportioned to me and half to my husband?
My estimated annual income is correct (apart from it doesn't show an uplift in salary yet because that only started from today)

Yes.  Half to each account holder, husband or otherwise 😉

Bookworm105

jojo_1982 said:

Thanks so much. I've logged in to that and can see there's a deduction of £880 for untaxed interest on savings and investments.
I assumed I would have to report any interest earned at the end of the tax year and then pay interest on this. Does my tax code mean I won't have to do that?

please understand that a tax code is a method of collecting tax in a "convenient" manner (pay as you go) as opposed to having to contact HMRC and make a lump sum payment

It saves HMRC the admin expense of having to process a tax return to collect tax on interest that HMRC has already been told about. The banks must report interest paid by them to customers to HMRC. It is however in your obvious benefit to ensure that HMRC has used the correct totals so you decide to update HMRC if the estimate used for the tax code calculation is incorrect. In principle if the estimate is "fair" then there is no need to declare anything to HMRC but you may experience small over or underpayments each tax year due to the use of the estimated value by HMRC, depends if you are content with a few £ up or down each year  

however, if you are required to submit a tax return either because you already do so or you have crossed one of the compulsory tax return thresholds then you would declare that interest on your tax return and and the tax due on it would be offset by any tax paid through PAYE by virtue of your tax code.