Am I on the right tax code? 543L

gomzie

Thanks for your reply. The issue is he received more than me. I was taxed £100 more than him..

Archer07

gomzie wrote: »

Thanks for your reply. The issue is he received more than me. I was taxed £100 more than him..

I have the same issue, I have been in my job for 8 months, handed my current employer everything including the last payslip from my previous employer. This month I notice my tax code change from 522L to 543L. In March I was taxed roughly £50 for N.I, same for this month however standard tax has shot up from £45 in March to £90 in April. Would anyone know if this is normal as I am thinking of getting this chased up

WestonDave

I think 2 seperate things are being confused here. The tax code goes up because normally each year the amount you can earn before paying tax goes up - in this case from £5225 in the year to 5/4/08 to £5435 in the current tax year to 5/4/09. In theory therefore that change should mean paying less tax on the same salary.

However at the same time this year, the 10p/10% tax band has been removed. In the tax year just gone, you had your £5225 tax free, and then the next £2230 taxed at 10%, with anything above (unless you earn more than £41k a year) taxed at 22%. Now anyting over £5435 is taxed at 20%. This means that if you earn less than £18k approx a year then you are worse off because the doubling of tax on the first £2230 of taxable income more than outwieghs the 2% cut on the rest. If you earn more than £18k then the 2% cut over your whole income starts to make you better off.

NI has not significantly changed so I would think it is the tax which is affecting you.

GO0SE

on the theme of the tax code I belive I should have been on 522L last year but was on 520L and then this financial year I am on 541L instead of 543L does anyone have any suggestions why or what the difference could be for?

dmg24

Do you have any taxable benefits through work?

GO0SE

No, and the people I work with who are on the same pay scale and terms and conditions were on 522L last year and 543L this year. It apears to just be me. I dont have any children don't receive benifits it all seems a bit strange

dmg24

If you are not aware of any reason, then you need to contact HMRC.

Savvy_Sue

Agree with dmg: one of my colleagues is also on a non-standard tax code and neither of us can think of a reason for this. They've been in touch with the tax office but it's still not sorted. In that case we're not talking much: this is a part-timer who pays a smidgeon of tax. But it's the principle of the thing, especially with the 10% band gone!

tallyhoh

They have a beginners guide to tax on here, it takes you thru step by step.


http://www.direct.gov.uk

syan

Dear Experts,

This thread is really informative.
My Annual pay is £44k. I was on 522L last year and on 543L this year, Class: A. the net pay reduced £54 for this month(For the month April £2578 and for the month feb/march £ 2633.36 ).

After Googling , i found that net pay will raise 0.90% for that salary range.


http://www.paypershop.com/news-cat/budget-2008-274.html.

Please let me know, if i am mssing something.


Thanks in advance