Chicken boarders

[feemcg]

I am a complete numpty when it comes to financial stuff and just got a new tax code notification. For the last year my code has been BR which I understood to be basic rate 20%. My code from April is 50T and after reading some guidelines I can't work out if I'll be better or worse off. Can anyone enlighten me please?

[Charlottechicken]

I only have a layman's knowledge but your code seems to indicate another source of income? The figure is how much you can earn before paying tax (times it by 10) and the letter might mean the whole code is temporary? The last time I saw a code like that it was my dad's and the number was low because he was on a state pension, which had already been deducted from his taxable allowance.

 

I'm sure an Omleteer who has staff or works in payroll will be able to enlighten us both!

[feemcg]

Yes, I do have a small NHS pension, should have mentioned that!

[Charlottechicken]

Aha, that explains it

 

You can only earn another £500 before paying tax, as your pension is taking up most of your personal allowance!

 

Must admit I'm not too sure about the letter though

[Mrs Webmuppet]

There have been computer problems at HMRC with regards the tax codings. It might be wise to get your codings checked out. I found this link it may be helpful.

 

 

http://www.hmrc.gov.uk/incometax/codes-basics.htm

[sadietoo]

Don't worry about the T suffix..it just means that if there is another increase in personal allowances (like there is every year) all the L suffixes get increased by X amount automatically, but the T suffixes don't and are looked at separately (supposedly!!!).

 

The revenue are doing some very strange things with code numbers at the moment.(and everything else they do actually) ...it was possibly simpler for you to have the BR code (basic rate ie 20% currently as you say) against your pension and all your personal allowances against your other income but they occasionally fiddle about with it all and generally mess it up.. If you are worried you could try phoning them about it..but I'd recommend waiting a little while as they have had this problem with code numbers in general and their phone help line (an 0845 number so you are paying ) goes through all the options and tells you how you can probably answer your own question on the internet, and after you have listened to all that says "sorry our phone lines are all busy at the moment please try again later"..and promptly cut you off Also they only employ numptys to answer the phone anyway and anything even slightly complicated requires a "techinician" to call you back...In other words they don't have a clue..you're probably better off visiting your local tax office.

 

The thing to do at the end of the year (if you are only liable to basic rate tax) is to add up your income from employment and pensions (including any state pension you have) and then take off the basic personal allowance for the year, and multiply the difference by 20% if the tax is roughly equivalent to your answer ok then no need to worry...if its not..then get on to the tax office.

 

Good luck!!