18 Apr 2016

A question about : Tax Code Query

Hi, hope this is the right place - please redirect me if I'm wrong.

I have recently been sent a new tax code by HMRC which I thought was wrong after researching online. I rang to query it and the woman on the phone told me something that appeared to contradict everything else I've read.

Some advice would be much appreciated.

I thought that on order to pay 40% tax you had to earn personal allowance PLUS 31k-ish. So you pay 40% tax on anything above approx 41k.

I have a main job which pays 38k,and a second job which is seasonal and pays around Ј700. I fully expected to be on the BR code for the second job, but when the coding notice came it said D0?

When I rang HMRC the woman said that you pay 40% on e everything above 31k and so the code is right.

Is this correct and could someone explain why? Or was I right in the first place?

Thanks in advance
S

Best answers:

  • You are right and she is wrong.
  • Hi, thanks for the replies. Apologies for shortness as I'm at work, but my tax code for the main job is 1000l. I gather this is the standard one?
    Will try calling again and see what they say. Thanks again.
    S
  • https://www.gov.uk/reporting-your-tax-code-as-wrong
    https://www.moneysavingexpert.com/banking/tax-rates
  • They do this if your circumstances change during the year.
    I changed from full to part time work during this year, when my state pension cut in. My total annual income is unchanged, at Ј35,000, yet they put me on 40% rate on the pension.
    I wrote querying this and got a reply saying this was standard practice - I would get a tax refund at the end of the year when they aggregated both P60s.
    It seems very unfair.
  • Puzzled by this - you have a salary and a state pension - why can the tax on the state pension not be collected through your employer at the appropriate rate by adjustment to your tax code?
    https://www.gov.uk/tax-on-pension/how-your-tax-is-paid
    And you don't receive a P60 for state pension.
  • I'm also going for a misunderstanding, while many people on here have a low opinion of HMRC staff it would be a very poor one indeed who really gave the response you think you got.
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