Tax Codes

[Sark79]

I wonder if anyone can help me understand tax codes?

Since starting my most recent job in November 2007, I was on an emergency tax code.  I tend not to notice these sort of things and it wasn't until a friend pointed out my tax code was different from his that I actually noticed the error. 

Last month while at work I went to the office and filled out a form ( p46 ) to fix the problem.  I had been told that I would receive a payment equaling the money I have been overtaxed in my next pay slip.  On this months pay cheque, the tax code is different, however I have only received a tiny payment on top of my wage.  After speaking to the "tax expert....lol" who is suppose to deal with these sorts of issues at work, I was told my tax payment is correct and no further money would be included in next months wage. 

Another colleague who was in a similar situation as myself was given a tax rebate ( is that the correct terminology? ) of around £800 this time last year when he brought up the problem of having the wrong tax code. I was given just over £90. We are on the same pay and we had both worked around the same time when we noticed the problem . 

Any suggestions would be great.   Can I phone the tax office or is it only my employer I deal with?   

I am clueless with these kinds of things


thanks

[steeveg]

yes you can phone the tax office, your tax code has nothing to do with your employer, you have to find out the right  tax office to phone,
http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=1

[redsimon]

What is your current code. Should be 543L unless you have other sources, company car etc...

[EvilPie]

The problem you've got is that most of the tax you over paid is from the previous financial year. If you were on a week 1 tax code starting on week 1 of this year it won't make much difference when you get your correct code.

I would guess your tax code is something like 543L-W1. That means that they base your tax on you having already used your tax allowance from the start of the financial year up to the day you actually start earning money. Because you didn't earn anything until November you'll have about 6 months of tax allowance due back to you which will be tax back on about £2700. If that's the case you should be due at least £540.

You need to speak to the tax office and they'll sort it for you. What they usually do is change your tax code for this year to account for the extra you paid last year. Like Steeveg says it the tax office that gives you your code. None of it is your employer's fault, they just put the codes in to a software package and it tells them what to pay you.

[Sark79]

Thanks for the advice.  I phoned the tax office earlier and they are looking into it for me.  Yep , my code is 543L.