Am I on the right tax code? 543L

A question about : Am I on the right tax code? 543L

I am on tax code 543L, I have been working for this company for 4 months now earning under Ј18K and I am married. When I googled this tax code it came up as the emergency tax code - confused????

Best answers:

• 543 is the correct tax code for 2008/9. It's also used as the emergency tax code.
• This confusion about emergency tax codes comes up frequently. I think (and anyone correct me if I am talking rubbish) that anyone starting work for a new employer will be put on the current years standard tax code - last year was 522L, this year it's 543L - which is known as an emergency tax code.
  However, the employer will pay you on a week 1 / month 1 basis, which means tax will be deducted from your wage each payroll on a non-cumulative (non-cumulative means tax is calculated on the basis of the earnings in the current pay period only and the tax deducted in the previous periods is ignored) basis until they receive notification from the Inland Revenue to take you off the week 1 / month 1 basis (and possibly inform the employer of a different tax code if you've previously been under/overpaying tax).
  Hope this helps!
• If you're on a Week 1 / Month 1 basis then I think your tax code should say W1 or M1 after it.
  A straight 543L would sound 'normal' to me.
• You shouldnt be on 543L week/month 1 as we are at the start of the tax year and so your employer knows your total income for the year!
  Employers are authorised to use 543L cumulative for anyone who starts up to and including 24 May.
• I used to have 522L now I am on 543L
• Yup, that's right, in the previous tax year (finished 5 April) the 'normal' tax code was 522L, and it's now gone up to 543L.
• BR = basic rate and indicates you are paying tax on the whole of your earnings, for a second job for example. If it says 543L BR its basic rate, 543Lwk1/m1 is standard non cumulative probably meaning the tax office is looking at your previous earnings and will contact your employer (most likely if you didn't hand ina P45) and 543L alone is standard.
  If you think you tax code if wrong call the Inland revenue - they are usually mosth elpful.
• Hi,
  I was on 522L last year. I have completed one year in the company I am working for. This year they have put me on 543L.
  My friend also works in my company and he was also on 522L and this year he is on BR. Also, there is difference in the salary as well. Would the tax code be changed automatically or shall i call Inland Revenue?
  Cheers
• Also wanted to mention that this is my first job in UK.
• Thanks for your reply. The issue is he received more than me. I was taxed Ј100 more than him..
• I think 2 seperate things are being confused here. The tax code goes up because normally each year the amount you can earn before paying tax goes up - in this case from Ј5225 in the year to 5/4/08 to Ј5435 in the current tax year to 5/4/09. In theory therefore that change should mean paying less tax on the same salary.
  However at the same time this year, the 10p/10% tax band has been removed. In the tax year just gone, you had your Ј5225 tax free, and then the next Ј2230 taxed at 10%, with anything above (unless you earn more than Ј41k a year) taxed at 22%. Now anyting over Ј5435 is taxed at 20%. This means that if you earn less than Ј18k approx a year then you are worse off because the doubling of tax on the first Ј2230 of taxable income more than outwieghs the 2% cut on the rest. If you earn more than Ј18k then the 2% cut over your whole income starts to make you better off.
  NI has not significantly changed so I would think it is the tax which is affecting you.
• on the theme of the tax code I belive I should have been on 522L last year but was on 520L and then this financial year I am on 541L instead of 543L does anyone have any suggestions why or what the difference could be for?
• Do you have any taxable benefits through work?
• No, and the people I work with who are on the same pay scale and terms and conditions were on 522L last year and 543L this year. It apears to just be me. I dont have any children don't receive benifits it all seems a bit strange
• If you are not aware of any reason, then you need to contact HMRC.
• Agree with dmg: one of my colleagues is also on a non-standard tax code and neither of us can think of a reason for this. They've been in touch with the tax office but it's still not sorted. In that case we're not talking much: this is a part-timer who pays a smidgeon of tax. But it's the principle of the thing, especially with the 10% band gone!
• They have a beginners guide to tax on here, it takes you thru step by step.
  https://www.direct.gov.uk