Anyone know about income tax codes?

[Large]

To my horror I saw my payslip today and expected it to have a much higher net pay than it did.

I spoke to my umbrella company who checked and said I was definitely on the wrong - BR - code and I should contact HMRC.

HMRC said my new tax code will be 740T - this is a zero allowance, according to what I have read.

Anyone able to explain what this might mean to me as someone whose pay is in the 40% tax bracket?

Cheers

Skint and confused!

 

[Dan B]

My understanding (which is limited) is that T is for Temporary. Your personal allowance is 740*10 = £7400, but the T is a signal to your employer that they shouldn't change the code next year when personal allowances change as they would do for anyone on an L suffix - instead, the tax office should look at again

 

[biggs682]

br stands for being robbed

 

[Lee_M]

what the guys above said, zero allowance is 0T - I know, that's what mine said once!

 

[Large]

Thanks for all your help. Just guess I'll have to wait until after 6 April to find out whether I owe or am owed by HMRC.

 

[Beebo]

I used to have a K code signifying a negative tax allowance when I ran a company car. Not much fun.

 

[ArDee]

Just tell the HMRC you don't want to join their club, as the annual fees are too high.

 

[accountantpete]

Basically they have allocated you personal allowances of £7400 instead of £8105 presumably because you have other income or get a reduced personal allowance.

The T indicates - as is quite usual - that they haven't got all your income details to make a definitive assessment but this is a reasonable estimate.

see here

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

You will presumably be sent a 12/13 Tax Return in May and that will finalise matters for that year.

 

[threebikesmcginty]

Basically they have allocated you personal allowances of £7400 instead of £8105 presumably because you have other income.

The T indicates - as is quite usual - that they haven't got all your income details to make a definitive assessment

see here

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

Come on pete, the intelligencia of CC have already proved that you know nothing about anything

 

[gbb]

BR...basic rate.
I just had a letter from HMRC stating i'm now on BR, because i may have some money coming from Redundancy Payments Office !!!
Do they know something i don't ????

I don't know HOW they figured this was a possibilty (although some employers from my ex company are waiting for an impending payout, perhaps we've all been lumped together despite mine being settled long since)

IIRC, it stated all 'normal earnings' from your normal employer would have tax deducted as basic rate.
I havnt had a wage slip since recieving the letter...i too may be in for a shock. I did mean to have a word with HR, see if they could shed any light as to its implications.

 

[Over The Hill]

It is probably an adjustment from last year and they have deemed you either owe them money or are expected to owe money so they will take the tax anyway.
If say you owe them £200 they change the code by lowering it by £1000 so that an extra £1000 attracts tax at 20% so they grab the £200.

If you do make returns for other income or allowances then you may have ticked the "take it from my paye" box.

I have always found them quite helpful on the phone so would say give them a call.

 

[furball]

I got quite a big refund after I realised I had been on the BR code for four years.

 

[Large]

Basically they have allocated you personal allowances of £7400 instead of £8105 presumably because you have other income or get a reduced personal allowance.

The T indicates - as is quite usual - that they haven't got all your income details to make a definitive assessment but this is a reasonable estimate.

see here

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

You will presumably be sent a 12/13 Tax Return in May and that will finalise matters for that year.

I think that is the case, Pete. Thanks very much.

I work on a PAYE basis through an umbrella company, and have an additional couple of thousand from my rugby commentaries.