Change of tax code to LX

mistryjayesh

Hi

Appreciate any help as I have no knowledge  I have been notified today that my tax code has changed from 1166L to 923LX and this is due to untaxed interest from savings which is £2409. 

I understand that LX means emergency tax code will my monthly tax deductions be a massive difference now?

I am a basic rate tax payer 

thanks 

Dazed_and_C0nfused

X is not part of a tax code.

L signifies you are currently getting the standard Personal Allowance of £12,570.

X signifies the tax code will be operated on a non cumulative basis.  Basically this means your employer or pension payer will use the new code from now without making reference to your income or tax paid earlier in the tax year.

There is only one "emergency tax code" and that is 1257L.

molerat

They have reduced your tax allowance from £11660 to £9230 which on a monthly basis taxes you on an extra £202.51 so paying an additional £40.50 per month, £121.50 over the next 3 months.

mistryjayesh

Thank you for the explanation. 

Will this increase how much tax I will now pay?

Dazed_and_C0nfused

mistryjayesh said:

Thank you for the explanation. 

Will this increase how much tax I will now pay?

Almost certainly yes.

You will start paying tax from £178/week now, instead of £225/week before.

It will probably change again from 6 April although you might not get the tax code for the next year just yet.

mistryjayesh

molerat said:

They have reduced your tax allowance from £11660 to £9230 which on a monthly basis taxes you on an extra £202.51 so paying an additional £40.50 per month, £121.50 over the next 3 months.

Thank you for clarifying. 

Will my tax code be reverted back at start of the new financial year

Dazed_and_C0nfused

mistryjayesh said:

molerat said:

They have reduced your tax allowance from £11660 to £9230 which on a monthly basis taxes you on an extra £202.51 so paying an additional £40.50 per month, £121.50 over the next 3 months.

Thank you for clarifying. 

Will my tax code be reverted back at start of the new financial year

It will likely change but not necessarily to 1166L.  You should be notified of the new tax code sometime between now and March.

mistryjayesh

Dazed_and_C0nfused said:

mistryjayesh said:

Thank you for the explanation. 

Will this increase how much tax I will now pay?

Almost certainly yes.

You will start paying tax from £178/week now, instead of £225/week before.

It will probably change again from 6 April although you might not get the tax code for the next year just yet.

Thank you much appreciated