Income Tax Question

Toto · 10-04-2008, 20:04

Hi, wondering if we have any experts.......here goes.

My wife got her P60 yesterday, she earns 15K a year and has a tax code of 522L

My tax code is roughly 466L, I earn about 23K once all overtime and bonus is added.

We don't have kids and no extra taxable perks, so I was wondering why mine is lower, any ideas?

**Graham M** · 10-04-2008, 20:06

I don't think the tax code number depends on your earnings? (as in its not higher if you earn more) I could be wrong though

danielf · 10-04-2008, 20:14

http://www.direct.gov.uk/en/MoneyTax...Tax/DG_4015472

Quote:

If your tax code is a number followed by a letter

* if you multiply the number in your tax code by 10, you'll get the total amount of income you can earn in a year before paying tax
*
the letter shows how the number should be adjusted following any changes to allowances announced by the Chancellor - common tax code letters are explained below

I don't know why they would differ for you and your wife.

homealone · 10-04-2008, 20:17

'staff' discounts can sometimes be classed as 'benefits in kind', but that is a big drop in your code - how many V+ boxes do you have

For comparison I used to have PPP & my code is 504L, I really should get it sorted out.

The good news is that if it is a mistake, you should get a nice rebate ...

SMHarman · 10-04-2008, 20:17

The L means you are on a standard personal allowance. The usual number for that in 07/08 is 522L. Yours has been adjusted down for some reason, this is normally benefits in kind (car, private medical, phone, allowances) or because you underpaid tax in 06/07 and elected to have that underpayment recovered in your 07/08 tax year.

£5225-£4660 = £565 at 22% means you have overpaid £125 in taxes in 07/08. My guess would be that you owed £125 in 06/07 that was recovered this way.

Toto · 10-04-2008, 20:24

Thanks all.

As I said, I don't have any taxable perks. Its odd there is a difference. I used to have a company car, but that was over 11 years ago, the tax on that ended about 18 months after I left.

Like you say, a call to my tax office may be the thing to do.

Thanks all for taking the time to post.

EDIT: Homealone, you just hit the nail on the head, I get personal healthcare, and I also buy some for the good woman, I bet I'm being taxed on that!!

SMHarman · 10-04-2008, 20:44

Quote:

Originally Posted by Toto

Thanks all.

As I said, I don't have any taxable perks. Its odd there is a difference. I used to have a company car, but that was over 11 years ago, the tax on that ended about 18 months after I left.

Like you say, a call to my tax office may be the thing to do.

Thanks all for taking the time to post.

EDIT: Homealone, you just hit the nail on the head, I get personal healthcare, and I also buy some for the good woman, I bet I'm being taxed on that!!

and I bet it is worth about 565quid.

homealone · 10-04-2008, 21:04

Quote:

Originally Posted by Toto

Thanks all.

As I said, I don't have any taxable perks. Its odd there is a difference. I used to have a company car, but that was over 11 years ago, the tax on that ended about 18 months after I left.

Like you say, a call to my tax office may be the thing to do.

Thanks all for taking the time to post.

EDIT: Homealone, you just hit the nail on the head, I get personal healthcare, and I also buy some for the good woman, I bet I'm being taxed on that!!

Just saw your edit - I still reckon it is worth checking with the tax office that the correct amount is being applied??

Toto · 11-04-2008, 11:29

Thanks all.

I called them, they confirmed that my code is for taxable benefits. All looks correct according to the chap at the tax office.