P60 Tax Code - Confused

avstar

Hi all

I've just received my P60 tax code and I'm confused by my tax code, which I've never really looked at before.

A couple of friends in similar situations as me (work full time & single, basic rate tax payers) have the tax code of 522L which seems to be the 'average' after searching the net, but mine is 483L.

Does anyone know why mine is different and does it mean I'm paying more or less tax than my friends ?

Any advice / info welcome as the whole tax thing is v confusing.

thanks
avstar

jem16

As you mention your P60, I'll assume it was last year's tax code you are referring to.

The normal personal allowance tax code for 07/08 was 522L. This tax year it is 543L.

Your tax code was 483L as opposed to 522L which means you have lost £390 worth of your tax free allowance. Perhaps you owed tax from last year? Or you have a taxable benefit from work such as medical insurance or a car?

So yes you will pay more tax than someone on 522L but there will be a reason for it. What does your coding notice tell you?

LilacPixie

It means you paid slightly more tax than your friends.

I don't know why butdo you have any work based benefits?? car/petrol anything at all?

avstar

Thanks for the replies, here's some more info which might throw light onto the situation....

I don't have any taxable benefits from work that I'm aware of. (no medical benefits, no company car, but I do pay into a company pension)
Yes it is the P60 for the year just ended.
I don't think I owe tax from previous years, I've dug out my 2 previous P60's which I never really paid attention to so here they are
2006-2007 code 464L
2005-2006 code 450L

Do you think they are incorrect too ?

LilacPixie

your going t have to contact your local tax office and ask. from memory i think I was 522l 07-08 503l 06-07

withabix

What did you do with the Notice of Coding they send you every year (and more often if your Code changes)?

That will tell you what your allowance is and what has been taken off it.

jem16

avstar wrote: »

Thanks for the replies, here's some more info which might throw light onto the situation....

I don't have any taxable benefits from work that I'm aware of. (no medical benefits, no company car, but I do pay into a company pension)

Pension payments will not alter your tax code.

2006-2007 code 464L

Should be 503L

2005-2006 code 450L

Should be 489L

Do you think they are incorrect too ?

In each case they are £390 below the personal allowance so you must have a taxable benefit of some sort that is reducing your tax code each year. You need to look out your coding notice from HMRC that you will get each year. That will tell you exactly why it's reduced.

Do you receive any state benefits like a pension?

avstar

I've never had a notice of coding from my current job, I have to chase them to send me my P60 !

I'll contact my HR department tomorrow and try and get it.

I don't get a pension - still quite a few years off yet !;)

I've been with this job for 3 years, previous to this I had a job where I received Bupa membership. I've dug out the tax stuff for my old job and I do have "coding of notices" for 2003 & 2004, both list medical insurance payments of £395 in the deductions column.

Do you think the tax office still think I receive this in my current job, even tho I never have for this job? Seems to be similar amounts.

jem16

avstar wrote: »

I've never had a notice of coding from my current job, I have to chase them to send me my P60 !

I'll contact my HR department tomorrow and try and get it.

Coding notices come from HMRC not your work.

I've been with this job for 3 years, previous to this I had a job where I received Bupa membership. I've dug out the tax stuff for my old job and I do have "coding of notices" for 2003 & 2004, both list medical insurance payments of £395 in the deductions column.

Do you think the tax office still think I receive this in my current job, even tho I never have for this job? Seems to be similar amounts.

Seems more than likely. You should phone HMRC and find out what is happening.

withabix

avstar wrote: »

I've never had a notice of coding from my current job, I have to chase them to send me my P60 !

I'll contact my HR department tomorrow and try and get it.

I don't get a pension - still quite a few years off yet !;)

I've been with this job for 3 years, previous to this I had a job where I received Bupa membership. I've dug out the tax stuff for my old job and I do have "coding of notices" for 2003 & 2004, both list medical insurance payments of £395 in the deductions column.

Do you think the tax office still think I receive this in my current job, even tho I never have for this job? Seems to be similar amounts.

Yes, the IR appear to think you still receive this, as you haven't told them any different. As you have no BIK in your current job, there's no P11D required (which would provide the info to the IR) so the IR will assume everything stays the same. They shouldn't, but they appear to have done.

Notice of Coding comes from the IR, not your employer. Have the IR AND your employer both got your correct current address?

You need to contact your Tax Office (your employer will give you the details). You are due approx £100 per year in tax rebate since you started with your current employer, assuming you do in fact have no BIK.

avstar

Yes the tax office have my address because they sent the old Notice of Coding to it, sorry forgive my ignorance but what is BIK and P11D ?

Thanks everyone - I think a phone-call to the tax office seems the next step....prepare to be on hold for a large proportion of my life !:rolleyes: