Wrong tax code - what will happen if HM Revenue arent contacted?

[tigwig]

My husband received a letter yesterday informing him of his tax code and that he will have a personal allowance of £7475 once he gets a job and comes off Employment Support Allowance. The problem is he has never been on any kind of benefit and is employed so obviously this is all wrong. I have tried to contact them myself today and they have made a note on his records about what I have said but cannot do anything without speaking to him. He works extremely long hours, weekends too and regularly doesnt get home until nearly 8pm and hates using the phone anyway so it is going to be very difficult for him to speak to them. So if he does nothing, what will happen?

[mccfluff]

why not write back to them?

[twix123]

The personal allowance for the 2011/12 tax year is £7475, therefore his coding seems to be correct notwithstanding the errors regarding ESA

[rowanwitch]

you can email them...I changed my name on line its just correcting details afteral they have a contact us on their website

[tigwig]

He has been getting in at between 7.30 - 8pm on a night so you can imagine after just doing a 3hr drive home the last thing he wants to do is call the Inland Revenue! He is also useless on the phone lol.
I'm not sure if he can email them about it she never gave me that option just said she needed to speak to him.
So is the pa 7475 for everyone then? I was presuming it was higher for him as they were wrongly thinking he was on benefit. Where they have got that from I've no idea. He has been in and out of work over the last few years and never been able to claim any benefit as he's been self employed nearly all his working life til now. Maybe the job centre has wrongly informed the IR?

[arwyn]

My Hubby hates the phone so he rings companies and gives them permission to speak to me, it's always worked for us.

[twix123]

The rates for 2010/11 and 2011/12 are as per the following link:

http://www.hmrc.gov.uk/rates/it.htm

[boxtops]

Yes, the £7475 will be everyone's basic allowance for 2011-12. Can't he email them through their website if he doesn't want to use the phone? - http://search2.hmrc.g...c/contactus/start.jsp

[DavideMexia]

Those letters confirming the tax code is just for your information. Keep them in a safe place for later review if any Issue relating to your Tax Code comes up.

Be aware that for the Basic personal allowance will change from 5th april 2011 onwards according to the New legislation.Your basic personal allowance has increased from the previous 6475£/year limit to 7475£/year new limit. This means that the first 7475£/year your receive from employment is free of tax. This benefit the the tax payer specially to those who work in a part time basis.This means that any income related to employment that falls bellow 7475£ is free of tax.

This means that an employee starts to be taxed when they receive over that amount a year. Any amount over is taxed .

On the other hand the new rules relating to taxation which are enforced from 5th april 2011 will not benefit those that receive over 35000£/year. Please be aware that the figure for the higher rate was previously 37400£/year. This is 2400£ difference that will fall at the higher rate. There was a reduction in the higher rate limit which mean that more people will be taxed and will fall in the higher rate.

This government is prejudicing in some way the richest (people who earn more than 35000£) and helping the people who earn less than that amount in the name of a Fair and Equitytable Tax system in the United Kingdom.

For any further information speak to a tax planner.

[Dave14]

Not strictly relevant but ...

Did you know that the 2011 allowance for 65-74 year olds is £9,940 and for those over 75 it is £10,090? Alarmingly, unless you have filled in certain forms, HMRC does not know your age and it will continue to tax you using the lowest (£7,475) code. Please make your elderly relatives aware of the higher rates.