Jobs

Personal Finance

Tax Code 464L

I know this means I pay tax on earnings ABOVE £4640 ( approx )

I just do not feel this is right - do you agree? I have heard of people with higher tax codes who earn more than me.

My basic is £21231

I have an interest free loan with work which I get taxed on ( according to my PAYE notification ) of £526

I know there is that ' listen to the taxman ' website - but it does not state if your Tax Code is correct or not

FieryP125 Sat 02/08/08 10:10

<< Previous

Next >>

Subscribe to question

Post an Answer

dzug
Sat 02/08/08
10:47

The normal tax code for 2008-09 is 543L, and most people whether they earn more or less than you will have this.

Because you have an interest free loan, you are liable to tax on it, hence your tax code has been reduced so that you pay that tax with your salary rather than having to pay it as a lump sum at a later date.

Whether it's been reduced by the right amount I've no idea.

factor30
Sat 02/08/08
10:55

This link shows basic tax allowances.
http://www.hmrc.gov.uk/rates/it.htm

The standard allowance is £6035 but in your case this would be reduced by £526 for the loan 'benefit in kind' bringing it to £5509.

There are several reasons why your allowance is quite a bit lower. Do you have any other income? Do you owe tax from an earlier tax year. Do you have any other benefits in kind such a BUPA or company car?

The fact that you earn £21231 is interesting but the level of earnings does not affect the basic rate allowance.

You should have received a notification of tax code from HMRc for 2008/09 which would explain how your allowance was worked out. Just ring HMRC if you need more info.

factor30
Sat 02/08/08
11:07

I took my figures above from the HMRC website (see link in my posting) but maybe the HMRC site is showing the wrong figures!

I think dzug's figure of £5435 sounds more like it . This is confirmed by another HMRC page
http://www.hmrc.gov.uk/pensioners/reducing-pa. htm

Maybe the higher figure of £6035 is the one that is being introduced for some people to overcome the problems caused the removal of the 10% band.

Does anyone know which is right?

If the allowance is currently £5435 then deducting the £526 benefit in kind would make FieryP125's code about right, although the actual precise figure would depend on other factors as descibed in my posting above.

FieryP125
Sat 02/08/08
16:39

Question Author

I do have a BUPA allowance that shows on my payslip as an income and an outgoing for the same amount

kempie
Sat 02/08/08
23:33

The 603L coding is indeed the one that will be replacing 543L (I think September was the original month announced???) as the standard personal code in an attempt to reverse the 10p tax rate removal fiasco.

buildersmate
Sun 03/08/08
06:54

You will find that having the BUPA will also count as a taxable perkable - taken into account by a reduction in your Coding.
The way you establish whether the Coding is right is by dialogue with your tax officer

Post an Answer

Submit the above question and answers

add to del.icio.us	add to digg	add to furl
add to reddit	add to Technorati	add to Blinklist
add to StumbleUpon	add to squidoo	add to ma.gnolia
add to Cocomment	add to Netscape	add to Fark