Any tax experts out there?

[Turkish]

Got my new tax code through and it's changed to a K230 number which means this month according to my pay slip i wil pay over double a month more in tax than in March despite my circumstances not changing at all. Any ideas as to why? According to their calcualations i have a tax band adjustment of -£16737 a benifit of £374 leaving a total of -£17111, with -£2311 tax due which has been turned into this code. Is this a cock up or am i missing something?

Edited 21 April, 2014 by Turkish

[CB Saint]

Did you owe tax from the last year, they may be trying to collect it through the tax code as opposed to asking for a lump sum. They might also assume that you will have to pay the same again next year and are collecting that as well.

 

did you get a company car last year. If your company forgot to notify the hmrc, that could be it

[Turkish]

Did you owe tax from the last year, they may be trying to collect it through the tax code as opposed to asking for a lump sum. They might also assume that you will have to pay the same again next year and are collecting that as well.

 

did you get a company car last year. If your company forgot to notify the hmrc, that could be it

 

No, I did a tax return and got £54 back (Whoop!). Also i get a car allowance not a company car. Nothing has changed.

[Whitey Grandad]

Ring them and ask, it's the only sure way. My situation is relatively straightforward but they keep getting it wrong.

[CB Saint]

I would give them a call and ask them. Unless you owe tax or earn £100k plus or have a flash car, your personal allowance shouldnt be a k code. If you still have the coding notice that they should have sent you, it will say on there.

 

if it is a cock up, they can correct it and any overpaid tax should be refunded next month

[Turkish]

I would give them a call and ask them. Unless you owe tax or earn £100k plus or have a flash car, your personal allowance shouldnt be a k code. If you still have the coding notice that they should have sent you, it will say on there.

 

if it is a cock up, they can correct it and any overpaid tax should be refunded next month

 

Well neither of those!

 

Still got the coding notice, it's the -£17111 rate band adjustment that worries me, not sure where that has come from.

 

Cheers though, guess i'll call them in the morning

[St Chalet]

If you earn over £116k or they believe you will this year, your personal tax allowance disappears. Add the tax you owe that possibly explains it.

[Turkish]

If you earn over £116k or they believe you will this year, your personal tax allowance disappears. Add the tax you owe that possibly explains it.

 

I do neither!

[St Chalet]

I do neither!

 

You'll likely be getting a new corrected tax code then.

[Turkish]

You'll likely be getting a new corrected tax code then.

 

and a refund hopefully

[42]

Got my new tax code through and it's changed to a K230 number which means this month according to my pay slip i wil pay over double a month more in tax than in March despite my circumstances not changing at all. Any ideas as to why? According to their calcualations i have a tax band adjustment of -£16737 a benifit of £374 leaving a total of -£17111, with -£2311 tax due which has been turned into this code. Is this a cock up or am i missing something?

 

How the 'K code' works

 

If your deductions *****axed income on which tax is still due) are more than your allowances you'll be given a K code, to ensure you pay tax on the excess. Whereas with other tax codes the number indicates the amount of income you can have tax-free, the number in a K code multiplied by ten broadly indicates how much must be added to your taxable income to take account of the excess untaxed income you received. The tax deducted for each pay period cannot be more than half of your gross pay or pension for that period. If more tax is due you will pay it at a later date.

 

You might see a K code used if you have:

 

• company benefits

• state benefits

• tax to pay back from an earlier tax year

 

When a K code is operated, your tax deduction for each pay period cannot be more than half of your gross pay or pension. Your employer or pension provider restricts the amount of tax deducted using a K code to make sure that you retain a certain amount of take home pay or pension. If more tax is due it will be collected at a later date.

K code example

 

K497 means:

 

• your untaxed income was approximately £4,970 greater than your taxable income

• as a result, approximately £4,970 must be added to your total taxable income to ensure the right amount of tax is collected

(The actual calculation is more complex and of course precise - and ensures that the exactly right amount is added to your taxable income.)

 

I trust that helps

[42]

How the 'K code' works

 

If your deductions *****axed income on which tax is still due) are more than your allowances you'll be given a K code, to ensure you pay tax on the excess. Whereas with other tax codes the number indicates the amount of income you can have tax-free, the number in a K code multiplied by ten broadly indicates how much must be added to your taxable income to take account of the excess untaxed income you received. The tax deducted for each pay period cannot be more than half of your gross pay or pension for that period. If more tax is due you will pay it at a later date.

 

You might see a K code used if you have:

 

• company benefits

• state benefits

• tax to pay back from an earlier tax year

 

When a K code is operated, your tax deduction for each pay period cannot be more than half of your gross pay or pension. Your employer or pension provider restricts the amount of tax deducted using a K code to make sure that you retain a certain amount of take home pay or pension. If more tax is due it will be collected at a later date.

K code example

 

K497 means:

 

• your untaxed income was approximately £4,970 greater than your taxable income

• as a result, approximately £4,970 must be added to your total taxable income to ensure the right amount of tax is collected

(The actual calculation is more complex and of course precise - and ensures that the exactly right amount is added to your taxable income.)

 

I trust that helps

 

Apologies - *****axed income = untaxed income

[Turkish]

Thanks 42

[Tony F]

Well neither of those!

 

Still got the coding notice, it's the -£17111 rate band adjustment that worries me, not sure where that has come from.

 

Cheers though, guess i'll call them in the morning

 

What was the outcome Turks?

[Turkish]

It was a cock up, they had me down as working for my former employer and current one, they never got a P45 from the old one apparently which I left in July so assumed I had two jobs with a combined income from both. Going to amend the tax code and will get the overpayment back next month, thanks for help everyone.

[42]

Thanks 42

 

Glad I could help. Don't let anyone else know though as they are all convinced I am a loon ;-)