in year tax code changes
renatop
Posts: 3 Newbie
in Cutting tax
In 2017-2018 I worked for 3 employers, they applied following tax codes:
1st employer 042017-072017 tax code 1150L
2nd employer 072017-122017 tax code 1150L(until 092017) and 968L(from 102017)
3rd employer 012018-042018 tax code 968L
I also had a freelance income it that period of £467
So after entering all into tax return assessment I have to pay £104.60 which looks a bit to high. I am not accountant so I might be wrong.
Why or how can employer change my tax code? Only reason I can remember is that I applied for for 2015-2016 to transfer tax free allowance from me to my wife(since my income was way bellow £10800). But would that have effect that far into future?
What are your advices?
Thanks
rene
1st employer 042017-072017 tax code 1150L
2nd employer 072017-122017 tax code 1150L(until 092017) and 968L(from 102017)
3rd employer 012018-042018 tax code 968L
I also had a freelance income it that period of £467
So after entering all into tax return assessment I have to pay £104.60 which looks a bit to high. I am not accountant so I might be wrong.
Why or how can employer change my tax code? Only reason I can remember is that I applied for for 2015-2016 to transfer tax free allowance from me to my wife(since my income was way bellow £10800). But would that have effect that far into future?
What are your advices?
Thanks
rene
0
Comments
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only HMRC can change a tax code, but when they notify the employer of a different code (968 in your case) the employer is legally obliged to use it.
but, when HMRC change a code they always send you a new coding notice which always explains why the code has changed. Presumably you ignore/bin letters you receive otherwise all you have to do is read the notice.
If you have "lost" it, then log into your government account and a list of your tax code and explanations is repeated on there
transferring allowance will continue until you tell HMRC to stop, so yes of course a change in 15/16 will still apply in 17/18 and 18/19
if £467 is your income in 17/18 then your 17/18 tax code will not reflect that since the income has not yet been declared to HMRC in your 17/18 tax return. Anyway for 17/18 if that is your gross income, then the trading allowance of £1,000 means it is all tax free anyway, so any adjustment applied to your 17/18 code based on historic freelance income and then carried forward to your 17/18 code as an estimated adjustment for untaxed income is now wrong and needs to be removed.
log in and start taking control of your own info
https://www.gov.uk/check-income-tax-current-year0 -
Why or how can employer change my tax code? Only reason I can remember is that I applied for for 2015-2016 to transfer tax free allowance from me to my wife(since my income was way bellow £10800). But would that have effect that far into future?
Unless you specifically cancel the marriage allowance then it will continue on for subsequent tax years.0 -
So after entering all into tax return assessment I have to pay £104.60 which looks a bit to high.
Unless you provide more information about the income declared on your tax return and how the tax code of 968L was made up it's impossible to say whether the £104.60 is correct or not.
Personally I thinks it's too low. 40% tax on £467 is £186.80 and that's before any other liabilities are considered.0 -
Dazed_and_confused wrote: »
Personally I thinks it's too low. 40% tax on £467 is £186.80 and that's before any other liabilities are considered.
I don't see anything to say that the OP is in the 40% tax bracket, in which case the £467 would only be subject to 20% tax, so £93.40 for that.0 -
I agree there's nothing to say the op is a 40% payer. But there's equally nothing to say they are a basic rate payer.
There are billions of reasons why they might owe £104.60.
Until the op provides more information it's all guesswork or assumptions, like such a lot of the posts on here!0 -
Dazed_and_confused wrote: »I agree there's nothing to say the op is a 40% payer. But there's equally nothing to say they are a basic rate payer.
But the odds are in favour of basic rate. However, this is the key to being able to provide an answer...
Until the op provides more information it's all guesswork or assumptions, like such a lot of the posts on here!0 -
Sorry guys for not giving you more info.
£476 was my earning for freelance job additional to my regular salary which was £27,356.60
(£3,160 tax paid).0 -
if you don't trust the maths then post all your figures for each employment so the cumulative calculation can be checked. At the same time confirm your tax code reasons as mentioned in post #2 aboveSorry guys for not giving you more info.
£476 was my earning for freelance job additional to my regular salary which was £27,356.60
(£3,160 tax paid).0 -
£3160 appears to be the the tax deducted from £27356 using code 1150.0
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