Personal tax allowance reduced by £8300
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PB2018
Posts: 5 Forumite
in Cutting tax
I’ve received my tax summary for 18-19 by post which was shocking- and checked my online HMRC tax account to confirm it siad the same. I’ve tried to call the tax office without success, can someone advise / help please. I have never needed to do srlf assessment and never had any tax issues.
Ive been in the same employment since July last year. I have a job and a pension. In total my income is £53k. Last year my personal allowance was L1191. I dont owe tax or claim expenses etc etc. My tax summary for this year shows my personal allowance as L47. Yes £470 is my personal allowance for 18-19!!. Over £8830 has been taken off my personal allowance for ‘band rate adjustment’. Can some please advise help if this is right?
Ive been in the same employment since July last year. I have a job and a pension. In total my income is £53k. Last year my personal allowance was L1191. I dont owe tax or claim expenses etc etc. My tax summary for this year shows my personal allowance as L47. Yes £470 is my personal allowance for 18-19!!. Over £8830 has been taken off my personal allowance for ‘band rate adjustment’. Can some please advise help if this is right?
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Have you checked your HMRC Personal Tax Account for how your personal allowance has been arrived at?0
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Tax band adjustment in the tax code suggests that you have income over the higher rate threshold (£46350) and more than 1 source of income
It also suggests that neither source of income is itself in excess of £46350 but added together they are.
I would assume that the other source of income has the basic rate (BR) tax code allocated.
The BR code only collects tax at 20%, and if the income of the source where 47L is in operation is less than £46350 then no 40% tax will be taken there either if the full code was allocated.
The £8300 restriction to the code is there to collect the additional 20% tax on the estimated £8300 of your income that is taxable at 40%.
You can elect for this to be changed and ask that the source currently coded BR be coded D0.
By doing this all of the income at that source would be taxed at 40%, and the full 11850 allowance would be given at the main source. However, it will mean you will overpay tax throughout the year. Meaning you'd have less net income in total each month than you will have if the current codes are operated.
The codes issued assumes your income this year will be approx £54650.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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This is the first time I’ve used this forum and in less than an hour you’ve undone three days of worry. Thank you for clarifying this matter and reassuring me all is as it should be. Have a great weekend0
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