Help with tax coding please..

C_Mababejive
C_Mababejive Posts: 11,653 Forumite
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in Cutting tax
Hello,

For tax year 2018-19 i have had a change of tax code notice.

My tax code is changing from 1046L to 2445L. What does this mean and what is the end result?

Thanks..
Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
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Comments

  • BoGoF
    BoGoF Posts: 7,079 Forumite
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    You must have claimed something ?

    Have you completed a Tax Return recently?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    It means you will a lot less tax (or even get a refund) next time your employer or pension company pays you.

    But the number is meaningless, you need to to give us breakdown of how the 2445L has been arrived at.

    Chances are you have claimed for something on your 2017:18 Self Assessment return and HMRC have assumed the same things (gift aid, expemses, pension relief etc etc) will apply in 2018:19.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    C_Mababejive wrote: »
    Hello,

    For tax year 2018-19 i have had a change of tax code notice.
    if you genuinely received such a notice it will explain in (pidgin) English how the code was worked out - so what does it say?
  • C_Mababejive
    C_Mababejive Posts: 11,653 Forumite
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    I made a sipp contribution in 17-18 and i think it will be related to that. I received basic rate relief via the sipp provider but maybe this relates to the portion in the higher tax bracket? i dont intend to make the same contribution in 18-19 ??
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    Tax relief for 2017:18 is given in your Self Assessment calculation.

    So you need to also HMRC to remove any pension relief for 2018:19.
  • Lorian
    Lorian Posts: 5,701 Forumite
    Name Dropper First Anniversary First Post Photogenic
    It will say the reason for the new code in the notes on the back of the notice of coding.
  • C_Mababejive
    C_Mababejive Posts: 11,653 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Dazed_and_confused wrote: »
    Tax relief for 2017:18 is given in your Self Assessment calculation.

    So you need to also HMRC to remove any pension relief for 2018:19.

    But why are they just assuming that the same will happen in 2018-19?? thats madness,, it says personal pension relief £13546
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • Lorian
    Lorian Posts: 5,701 Forumite
    Name Dropper First Anniversary First Post Photogenic
    C_Mababejive wrote: »
    But why are they just assuming that the same will happen in 2018-19?? thats madness,, it says personal pension relief £13546


    Bottom right page TRG7 of the tax return guidance tells you to fill in the "other information" box on page TR7 to say its a one-off payment

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/615549/SA150-2017.pdf

    Are you sure you grossed up the amount you claimed too - don't want to short change yourself!
  • C_Mababejive
    C_Mababejive Posts: 11,653 Forumite
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    Im pretty certain i did write it up on the ITR as a one off sipp contribution. Maybe this is simply an adjustment to pay me the extra tax relief involved due to being in the 40% bracket? If so,cant they just leave the tax code unadjusted and refund to my bank acc instead?? I think it would help enormously if HMRC just automatically assumed basic knowledge and wrote in plain english with calculations to explain whats going on..?
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • BoGoF
    BoGoF Posts: 7,079 Forumite
    Name Dropper First Anniversary First Post
    edited 11 January 2019 at 8:33AM
    C_Mababejive wrote: »
    Im pretty certain i did write it up on the ITR as a one off sipp contribution. Maybe this is simply an adjustment to pay me the extra tax relief involved due to being in the 40% bracket? If so,cant they just leave the tax code unadjusted and refund to my bank acc instead?? I think it would help enormously if HMRC just automatically assumed basic knowledge and wrote in plain english with calculations to explain whats going on..?

    No, you would have got the higher rate tax relief through your 17/18 self assessment calculation.

    If you are not paying similar pension contributions this year you need to phone and ask for it to be removed, preferably before the code is operated. Otherwise you will end up owing tax for 18/19.
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