My tax code looks a bit weird - what do you think?

13

Hi there,

I've been working at a high street retailer for over a year now, and I received my P60 about three days ago for 06/07. I was on a 50hr/year casual contract, but was working 3/4 days per week during the summer, and again over Christmas/Easter. I've just renewed my contract with them and intend working throughout the termtime in my second year.

Now, when I started in June, I was being taxed a ridiculous amount on a BR code. Called Payroll, filled in the relevant forms, and my tax code was changed to 501L. Also got a nice big wodge of extra repayment money in my next payslip, which was lovely.

However, according to my P60, I've only earned £1780ish this year. It claims I've earned 1092 at the LEL, and £120 above the LEL. Great, but any ideas what an LEL actually is? HMRC website isn't much help... It also says I've earned £37 above the UEL threshold. HELP?!

Bizzarely, at the bottom of my P60, it says that I've had no tax deducted or refunded. Eh?! I a got £400 repayment in September!

I really don't understand so if anybody could help, that'd be fab! My measly rep is available to the most useful answers!

Reply 1

pghstochaj

11

I know this is a really simple answer but call your local tax office for advice. Have your NI, P60 and address details.

LEL is lower earning limit. It sounds like your rebate wasn't a genuine rebate as in from the tax office, hence why it's not showing up?

They are really good and answer the phone immediately, assuming you're employed in Bristol:

0845 302 1443

Is the number to call :smile:

Edit: Forgot to mention, LEL and UEL are related to NIC, not PAYE tax. I will re-read your post and see if that helps you. Yep, it looks like if you understand that they are NICs and not PAYE tax it makes sense? You didn't earn enough to pay NIC all the time but did occasionally?

Reply 2

Angelharpist

OP

13

pghstochaj

I know this is a really simple answer but call your local tax office for advice. Have your NI, P60 and address details.

LEL is lower earning limit. It sounds like your rebate wasn't a genuine rebate as in from the tax office, hence why it's not showing up?

They are really good and answer the phone immediately, assuming you're employed in Bristol:

0845 302 1443

Is the number to call :smile:

Thankies

I was going to ring them tomorrow, but bizarrely, my tax office is in North Wales, despite being employed in London. I already have the number, but your help is much appreciated :smile:

My problem, was that I didn't really understand anything on my payslip and I didn't fancy ringing them, completely clueless, for them to fobb me off... :frown:

Reply 3

pghstochaj

11

They won't, but they might be just as clueless :wink:

I work in L'boro but my local tax office is South Yorkshire, so am in a similar position. I reckon the calls go through to a few centres anyway but might be wrong.

http://www.key-personnel.co.uk/cor_newsarticle.aspx?nl_id=80

Will explain all the terms and will hopefully make you seem more clued up tomorrow, if not, they are there to help so let them help :smile:

See my edit above if you have missed it.

Reply 4

Angelharpist

OP

13

Yeah, your edit seems right. Sometimes NIC but not all the time - not sure what kind of position that puts me in!

What worried me I suppose was the fact that the emergency code is 503L and mine is scarily similar at 501L. Far too similar for my liking :tongue:

Reply 5

pghstochaj

11

I spent a year paying month 1 tax codes, £500 cheque is on my way :biggrin:

Isn't 503 just the newer version of 501? I.e. the tax-free allowence divided by 10? It shouldn't be an emergency tax code but the actual normal tax code for your circumstances?

Try that too:

http://www.digita.com/taxcentral/home/employment/taxcodecalculator/default.asp

Sorry, I am probably confusing you more, I am hardly an expert!

Reply 6

Angelharpist

OP

13

pghstochaj

I spent a year paying month 1 tax codes, £500 cheque is on my way :biggrin:

Isn't 503 just the newer version of 501? I.e. the tax-free allowence divided by 10? It shouldn't be an emergency tax code but the actual normal tax code for your circumstances?

Try that too:

http://www.digita.com/taxcentral/home/employment/taxcodecalculator/default.asp

Sorry, I am probably confusing you more, I am hardly an expert!

According to the letter the IR sent me BR, BR1 and 503L are emergency tax codes. Arghhhh! Toooooo many numbers so late at night :frown:

Reply 7

Angelharpist

OP

13

And according to that I should be 497L...

Would that entitle me to a tax refund from 501L?

Reply 8

pghstochaj

11

Isn't 497L the older version of it? Maybe ignore the site and ignore me :wink:

Isn't 503L only an emergency code if it's not the right one? I am 522L this year and was 503L last tax year.

Just to retrace, what do you think you're due or do you think you owe them?

With those earnings, you should have paid zero PAYE tax and rarely NIC (as it requires you to earn above the threshold of £100/week which you rarely did, it seems?

Edit again:

LEL is irrelevant to you, whether you have paid any NIC is dependent on going above the threshold of £97/week (last tax year). If you never did, no NIC.

Reply 9

Hedies

503L was the standard single persons tax code for tax year ending April 2007 - the current year's code is 522L - not normally used as an emergency code - I suppose it is possible but I would expect your payslip to say somewhere that you were being taxed on a week 1 basis and it doesn't sound like you are. As the previous posts say the LEL is nothing to do with tax but is linked to National Insurance and any pensions scheme you pay into - if you don't pay pension (and you shouldn't unless you're working somewhere you might be going to make a future career in) there shouldn't be anything more than a minimal deduction from your wages and that's on a good week!
It is fairly normal for tax offices to be miles away from where you work - sometimes it's to do with businesses being registered at a certain address but sometimes it's just the way companies have been allocated across the Inland Revenue.

My tax code looks a bit weird - what do you think?

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