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| *Ostroff, Fair and Company>>>United Kingdom Taxes |
How do I know what my tax code should be? |
How do I know what my tax code should be? Your tax code should be located on both your monthly pay-slip and also end of year documents such as a P60. However, whether the code is correct will depend on your personal circumstances. In most circumstances, for the 2006/2007 tax year, you will most likely start with the code 503L. This is based on you having a full personal allowance of 拢5,035. (The L is a code letter which relates to your circumstances - most people are 'L'.) If you have no other major sources of income and do not receive any 'taxable benefits' from your employer then your tax code on your pay-slip/P60 should show 503L for this current tax year. However, the figure will change if you have any positive or negative amendments to your code. It is not possible to advise what your new code number will be, as it will depend on the value of the adjustments. The most common 'negative' adjustments are for taxable benefits from your employer such as Private Medical Insurance (PMI) or a company car. Positive adjustments could be regular payments to a personal pension scheme or regular gifts to charity(but only if you are a higher rate taxpayer). If for example, you receievd PMI, this may have a value of 955. As a result, your code would reduce by this amount to 4,080. You would then have a code number of 408L. If you have no adjustments, and therefore a 503L code, you will not receive any paperwork. However, if you do have adjustments, HM Revenue & Customs (HMRC) will issue you with a 'Tax Coding Notice' either at the beginning of a tax year or after they have adjusted your tax code during the year due to information they have received. If you are in a new job, or a first time job, you will often need to complete form P46 (your employer should supply you with a copy) as this will get you onto the 503L code. Often, if this is not done, a person will have a code of 'BR', which means that a blanket tax rate of 22% is applied to all salary payments. Finally, if you do not think your code is correct, you can always contact HMRC (http://www.hmrc.gov.uk). You will need to speak to someone in the local tax office that deals with your PAYE affairs (this may not be the nearest office to you geographically). Your taxing authority should have a web site that you can visit in your country. If that is not available, I belong to an international community of business associates and some are from Holland. Be my "guest" at Ad Land Pro and contact Holland community members directly. http://www.jazgreenlivecashculture.net/... Just call them on the phone, there are enquiry numbers given in all local directories. It is useful to actually get an explanation if you think something might be wrong and it's a lot quicker than tracing whoever's supposedly dealing with your on-line enquiry. And yes, they can lose forms you file on-line as well ... Get them to confirm anything they may tell you in writing. You can't tell? If you are employed, you should have recieved your P60 from your employer in recent months stating your current tax code, or look on your latest payslip. |
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