Tax Code question

waterman10

Hi, my tax code in recent months has been S1236L (I live in Scotland), but on January's payslip it was S1196L.  I wondered if anyone can explain to me why it would've changed. 

Also, as I understand it the personal tax allowance is £12,570 so shouldn't my tax code be S1257L ?

Thanks for any help

molerat

Your on line tax account will explain all (or the letter you would have received from HMRC), a million and one reasons why it could be other than 1257.

waterman10

Thanks.  I went into Government Gateway and discovered it's £12,570 minus untaxed savings interest.

molerat

waterman10 said:

Thanks.  I went into Government Gateway and discovered it's £12,570 minus untaxed savings interest.

So is it correct for this year's estimated interest ?

waterman10

I'm not sure. I'll need to work it out 

I don't understand why they deduct untaxed savings interest from my personal allowance?
.

SiliconChip

waterman10 said:

I don't understand why they deduct untaxed savings interest from my personal allowance?
.

Because that's the way it's done unless your untaxed savings interest is so large that it requires you to enter Self Assessment, which seems unlikely given the relatively small change to your tax code.

Marcon

waterman10 said:

I'm not sure. I'll need to work it out 

I don't understand why they deduct untaxed savings interest from my personal allowance?
.

Think about it: how else would they collect the tax for anyone who doesn't complete a self assessment tax return?

waterman10

But I shouldn't be taxed as I didn't earn enough in savings interest or in my job.

FrugaiMacDugal

If you contact HMRC they might let you pay what you owe direct, then adjust tax code back to normal.

Dazed_and_C0nfused

waterman10 said:

But I shouldn't be taxed as I didn't earn enough in savings interest or in my job.

Do you expect to earn more than £11,969 at your job in this tax year

Hi, my tax code in recent months has been S1236L (I live in Scotland), but on January's payslip it was S1196L. I wondered if anyone can explain to me why it would've changed. 

waterman10

Dazed_and_C0nfused said:

waterman10 said:

But I shouldn't be taxed as I didn't earn enough in savings interest or in my job.

Do you expect to earn more than £11,969 at your job in this tax year

Hi, my tax code in recent months has been S1236L (I live in Scotland), but on January's payslip it was S1196L. I wondered if anyone can explain to me why it would've changed. 

No I don't