tax code changing from 647L 1 to BR

[WhiteBear]

i received a letter from the tax office saying as from April 2010 my tax code will change from 647L 1 to BR... what does that mean?

[craft1948]

as far as I'm aware it means all your earnings will be taxed at the basic rate....

[craft1948]

this is an extract from the DM....
One warning sign is a new tax code with the letters BR or DO, indicating that no tax-free pay is connected to that income.


Read more: http://www.dailymail....ls.html#ixzz0i6XFdq6s

[ummmm]

Have they given you a reason why?

Currently you have an a tax free allowance of £6,470....that will then change to basic rate which (use to be) 22% with no allowance.

Has anything changed? Do you have a second job?

[WhiteBear]

numm no second job, and i'm already paying tax of £28 - £36 per week. so if it changes to BR is it calculated as 20% off every wage week i get? so for example if i get paid £200 a week, they would tke £40 of that? plus NI? so i would up with £140ish? i get paid weekly.


on my wage slip which part do i look? ' tax payable to date' or 'tax to date'?

as what craft sent, must b an error from the tax office?

if its a new tax year coming up shouldnt i get the tax free allowance of £6470? All comments welcome :)

[bensmum]

Contact the tax office. If you have no second income then you should get the allowance.
Yes BR means that it will be deducted at whatever the current base rate of tax is at the start of the new tax year (April). Your employer will have had notification to apply this rate.
Have you had any letters from the I Revenue asking for information which you might have overlooked? It might be that hey needed details and if you didn't supply information then they revert to the BR code. As I say you need to contact them to find out why it's happened.

[WhiteBear]

thanks guys!!

i received two letters from tax office in space of 3 weeks saying i need a tax code so Reed can work out how much tax to take off, does this mean some how they dont know my tax code? i've been with reed for over 3 years!!! although changed role last November, but because im still working for the same company (just different location and role) surely nothing should have changed? must be an error at the tax office?

[factor-fiction]

Do you receive any sort of pension, Whitebear?
It looks like an HMRC error but a quick phone call should help.

[WhiteBear]

factor, no i dont receive any pension! mayb in 35 odd yrs time i will b :-P

[WhiteBear]

oh thanks eddie, its strange that i've always been taxed from the sme company , do they not know that im payin tax? dont the tax office talk to each other or use the same system? whose taken my tax money :-O

[Panic Button]

I think you areasking us thequestions that you should be asking HMRC

[WhiteBear]

pannic i know, but tax office doesnt open on a sunday. well not that i know off. :-S

[WhiteBear]

i phoned up tax office the other day and they said ignore the letter cos it was sent out with the incorrect tax code. phew.