View Full Version : Tax Codes

24th Oct 2008, 15:44
with apologies to non UK folk.

I completed my tax return and HMRC have just advised me that I owe them over 600.

Looking at their calculation the personal allowance they have given me is 5200. However the tax code they gave me for last year was 632T, which I believe equates to 6320 before tax and would account for most of the difference.

The initial conversation I've had went along the lines of "your allowance is 5200 how do you propose to pay us the 600?"

Am I missing something?

Scumbag O'Riley
24th Oct 2008, 16:49
The 'T' in your tax code means, for want of a better word, 'T'emporary. Temporary until those thieving gits get around to giving you a final code which they appear to have done in their favour. So how are you going to pay the 600?

24th Oct 2008, 19:38
If they put you on the Emergency code and you'll be skin within the year.

24th Oct 2008, 19:46
I have a T code.It's for folk who don't want anyone to know what their coding is based on. I've been a T code for at least 25 years, so nothing temporary about it!

24th Oct 2008, 19:57
"T" usually means that you have Benefits in Kind and your employer has completed a P11D detailing such. "L" is Single Person's Allowance (which pretty much means everyone of working age even if they are married), "H" is the Married Couple's Allowance (for the old 'uns who are still entitled) and "K" is the dreaded negative tax code!

You should be provided with a Notice of Coding which details how your code has been calculated. The Single Person's Allowance plus any tax allowable items (i.e. professional subscriptions) less any Benefits in Kind or previous tax owed is the normal way it's calculated. HMR&C should be able to provide you with a copy.



24th Oct 2008, 20:15
Even when they fcuk up it's your fault because you should have told them they had it wrong to start with, s'true!

It quite amazes me how they do it, they are theivin' bastads, we know they are theivin' bastads, everyone knows they are theivin' bastads. Yet when we get a letter saying we owe them xxx we still surprised. Why when they are theivin bastads?

Equally when I thought I was really smart and had a sh!t hot accountant type bloke that slashed my tax bill (legally apparently!) I had the theivin' bastads owing me money. Great Times.

They changed my tax code apparently to resolve my overpayment. The next year the theivin' bastads then told me they (meaning me) screwed up and I actually owed them money! Now approaching two years in arrears. Bad Times.
So the theivin' bastads changed my tax code again

I spent the third year overpaying on my tax a sum which was less than 150 in total but it took forever, every month over paying by an amount which seemed to (totalled over 12 months) be far more than I owed (allegedly).

Even during the conversations about who owed who etc. I said to them:

take x from this year's bill from x of last years overpayment and send me a cheque for the difference and we're square
"can't do that"
but it's quick and easy and we'll all be straight
"can't do that"
but you get your money quicker and I know where I stand*1
"can't do that"

*1 they obviously need to keep us confused as hell so the theivin' bastads can get away with it!

In summary 2 things.
1. how are you going to pay them 600?
2. keep your arse well lubed 'cos u ain't gonna stop 'em from shaftin' u so get used to it!

Saab Dastard
24th Oct 2008, 20:20
600 squids?

Think yourself lucky, I owe 3765 :{:{:{:{:{:{:{


Lon More
24th Oct 2008, 20:26
Got a bill for final settlement for 2006 for 16000 when the Dutch tax office fkuced up. RFortunately I'd expected it so had most of it put in savings. Unfortunately I can expect the same for 2007

24th Oct 2008, 21:34
Im afraid you will have to do what the rest of us do which is to "piss and moan and take it up the tailpipe!".


Gertrude the Wombat
24th Oct 2008, 21:52
The tax code is only ever an estimate, and it's based on what you told them in the first place. The sums that get done at the end of the year tell you how much you should have paid. Usually you will not have paid the exact amount, but will have paid more or less than you should have done.

In your case you are very lucky - you've got away with paying too little all year, so the taxpayer (ie me) has given you an interest free loan of 600!

Where can I get my interest free loan then :confused:

24th Oct 2008, 22:00
Oh dear. Its not a loan. Its downright theft. Until I see a return on what I pay, thats how I will see it. I didnt want to buy into any cowboy banks.

Sorry for the thread drift :O

24th Oct 2008, 23:02
True Gertrude,

But what bugs me is this. I'm on a fixed salary, I have two taxable benefits worth 433 and 479 respectively. The tax calculation ought to be easy so why do they give me the wrong tax code? I've been working for the same company on the same basis for 4 years.

Two years ago they sent me a letter saying that they had reviewed my tax returns and that they would no longer require a return from me. A couple of weeks later I received a tax return.

I'd rather not have an interest free loan. I'd rather they just got the 'dam tax code right in the first place. If they are going to rely on the basic allowance why give anyone a tax code in the first place?

At the end of the last tax year I was straight with them. My salary hasn't changed (worse luck) and they undercharge me all year. Beats me. If I treated my clients like this we wouldnt have a business.

25th Oct 2008, 07:30
The letters from HMR&C which inform you that you don't have to fill in a tax return are for the following year. So, you receive a letter in April/May 2008 which says, " your tax affairs are so simple and boring, we can't be bothered with you but you do have a legal duty to tell us if something more exciting goes on in your finances" (my paraphrase!). This letter applies to the year 2009/2010 so you still have to complete the return for 2008/2009. It IS confusing and I complained to HMR&C about it - that was the explanation I received.

It looks as though what is happening here, is a time lag in processing information. Your tax return for 2007/2008 needn't be submitted to HMR&C until the end of January 2009; nearly a year after! If people complete their tax returns near the deadline (and most do) HMR&C end up with a backlog which doesn't get cleared until much later - hence the delay in getting the correct tax code.

So, for 2008/2009, the single person's allowance is 5,435 which, after your Benefits in Kind, should be about 5,000 i.e. a tax code of 500T.

However, you said you had a code of 632T. That's much higher than the SPA so you were either being given a tax rebate via your coding or you have tax allowable expenses. But your amended tax code seems about right given what you've told us.

Also bear in mind, it's not just what you tell Revenue & Customs, it's what your employer tells them as well!!



Gertrude the Wombat
25th Oct 2008, 09:24
My salary hasn't changed (worse luck) and they undercharge me all year. Beats me. If I treated my clients like this we wouldnt have a business.
Good point.

My tax affairs are a little more complicated, so I never expect it to come out right just from the tax code. Bizzarely, I feel more pleased in the years when they have to send me a refund - obviously I should be cross about those years, because they are the years when I have made them an interest free loan.

Of course I'm just being lazy - if I could be bothered I would work out my own tax liability, and complain if the tax code were wrong such that they are overcharging me. (We do do this if there's a gross error, but I don't bother to work out the correct exact amount.) Normally if you write to them and ask them to change your tax code (and give some sort of plausible reason) they do - after all, they're going to get whatever they're owed sooner or later, the code is only an estimate.

25th Oct 2008, 09:54
Rang the tax man one year and asked about 480 that was on my tax code statement as income and asked what it was for. The reply was "I dunno mate, do you want me to take it off?" "OK", says i and my tax code went up by said amount a few weeks later..