Am I on the right tax code? 543L

MKwife

I am on tax code 543L, I have been working for this company for 4 months now earning under £18K and I am married. When I googled this tax code it came up as the emergency tax code - confused????

Gillian88

543 is the correct tax code for 2008/9. It's also used as the emergency tax code.

gordonstights

This confusion about emergency tax codes comes up frequently. I think (and anyone correct me if I am talking rubbish) that anyone starting work for a new employer will be put on the current years standard tax code - last year was 522L, this year it's 543L - which is known as an emergency tax code.

However, the employer will pay you on a week 1 / month 1 basis, which means tax will be deducted from your wage each payroll on a non-cumulative (non-cumulative means tax is calculated on the basis of the earnings in the current pay period only and the tax deducted in the previous periods is ignored) basis until they receive notification from the Inland Revenue to take you off the week 1 / month 1 basis (and possibly inform the employer of a different tax code if you've previously been under/overpaying tax).

Hope this helps!

Savvy_Sue

If you're on a Week 1 / Month 1 basis then I think your tax code should say W1 or M1 after it.

A straight 543L would sound 'normal' to me.

fengirl_2

You shouldnt be on 543L week/month 1 as we are at the start of the tax year and so your employer knows your total income for the year!
Employers are authorised to use 543L cumulative for anyone who starts up to and including 24 May.

rodman

I used to have 522L now I am on 543L

Savvy_Sue

Yup, that's right, in the previous tax year (finished 5 April) the 'normal' tax code was 522L, and it's now gone up to 543L.

liney

BR = basic rate and indicates you are paying tax on the whole of your earnings, for a second job for example. If it says 543L BR its basic rate, 543Lwk1/m1 is standard non cumulative probably meaning the tax office is looking at your previous earnings and will contact your employer (most likely if you didn't hand ina P45) and 543L alone is standard.

If you think you tax code if wrong call the Inland revenue - they are usually mosth elpful.

gomzie

Hi,

I was on 522L last year. I have completed one year in the company I am working for. This year they have put me on 543L.
My friend also works in my company and he was also on 522L and this year he is on BR. Also, there is difference in the salary as well. Would the tax code be changed automatically or shall i call Inland Revenue?

Cheers

gomzie

Also wanted to mention that this is my first job in UK.

claire16c

gomzie wrote: »

Hi,

I was on 522L last year. I have completed one year in the company I am working for. This year they have put me on 543L.
My friend also works in my company and he was also on 522L and this year he is on BR. Also, there is difference in the salary as well. Would the tax code be changed automatically or shall i call Inland Revenue?

Cheers

Your code is correct.

It means you can earn up to £5435 before being taxed (last year it was £5225).

Looks like your friend is being emergency taxed so he will need to call your HR dept and get it sorted so he is on the proper code. He will also need to get back the extra tax they have taken, in his next pay so he needs to contact them asap!