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Tax Code Change
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Tomatillo
Posts: 97 Forumite

in Cutting tax
I'd be really grateful if anyone could help me work out the impact this tax code change will have on my monthly pay for the rest of 24/25.
Background is that I have two separate employers so PAYE can be quite complicated. Both have had changed tax codes this week.
One of them has gone from K545 to 626LX. I have looked up what they mean but finding it tricky to work out what it will mean in practice. Is there an easy way of working out what the impact on my take home pay will be?
Thanks
Background is that I have two separate employers so PAYE can be quite complicated. Both have had changed tax codes this week.
One of them has gone from K545 to 626LX. I have looked up what they mean but finding it tricky to work out what it will mean in practice. Is there an easy way of working out what the impact on my take home pay will be?
Thanks
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Comments
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Tomatillo said:I'd be really grateful if anyone could help me work out the impact this tax code change will have on my monthly pay for the rest of 24/25.
Background is that I have two separate employers so PAYE can be quite complicated. Both have had changed tax codes this week.
One of them has gone from K545 to 626LX. I have looked up what they mean but finding it tricky to work out what it will mean in practice. Is there an easy way of working out what the impact on my take home pay will be?
Thanks
You can use this calculator, I think it's a bit long winded but should give the correct outcome.
The X isn't part of the tax code, it means the code is to be used on a non cumulative basis i.e. what has happened earlier in this tax year will be ignored for the moment.
https://www.gov.uk/guidance/work-out-an-employees-income-tax1 -
Thank you so much. The other employer has gone from BR to D0X, so I understand that goes from 20% to 40% (easier to work out!), so it makes sense this one has gone in my favour. Thanks so much.0
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Tomatillo said:Thank you so much. The other employer has gone from BR to D0X, so I understand that goes from 20% to 40% (easier to work out!), so it makes sense this one has gone in my favour. Thanks so much.
Because of that your main tax code needed something called a rate band adjustment, which contributed to it being a K code, and the second income was taxed at just 20% (BR tax code).
But when they have reviewed your tax code you are now liable to higher rate tax at the main source on its own so they can issue the 40% (D0) tax code for the second Income and that means the adjustment to rate band deduction isn't needed in your main tax code.
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Thank you. Looking at the numbers that looks spot on, thanks v much.1
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Does anyone know why my tax code doesn't have a letter.it us just numbers0
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Steve196460 said:Does anyone know why my tax code doesn't have a letter.it us just numbers0
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Steve196460 said:Does anyone know why my tax code doesn't have a letter.it us just numbers0
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