Looking For Advice On Tax Code

[fairycakes69]

Hi can anyone offer help with tax codes, I've recently changed my hours from 3 to 4 days a week, on £7.20 an hour. Last month I was taxed £9.40 on £873.60 tax code S990N this month I was taxed £98.80 tax code S454T on £873.60, this can't be right can it? Would like to know before I contact my boss.
Thank you

[Islay]

Just contact HMRC directly.

[Buenchico]

A basic tax code should be 1100 (because your personal allowance of tax-free pay is £11,000 and your tax code is obtained by dividing that figure by 10). However you've taken up the option to transfer 10% of your personal allowance to your partner (so that your own allowance drops to £9,900), resulting in a tax code of 990. (The N on the end is an indicator that you've given away 10% of your allowance).

So your 'old' tax code would seem to be in order. Your new tax code however appears to be based upon a revised personal allowance of just £4540, which does indeed seem to be wrong. The good news though is that the T on the end indicates that the allowance is subject to review by HMRC, so there's every chance that the problem might correct itself in the next period.

In the meantime though it would still seem best to ask how your new tax code has been arrived at.

[fairycakes69]

Thank you, will give them a call, just wanted to find out first.

[Jackdaw33]

I wish I was only charged £9.40 on £873.

[New Judge]

You have not, by any chance, started taking a State Pension, have you? The reduction in your tax-free allowance as shown by your revised code is £5,360 pa, which is about £103 per week. The State pension is paid without tax being deducted but actually forms part of your taxable pay. The tax due is collected by a reduction in your tax-free allowance. Just a thought.

[fairycakes69]

I phoned them up, my tax code was wrong, they were taxing me on 2 jobs, due to change of company with similar names. And also cancelled the personal allowance that I'd transferred to hubby. Now that I am doing an extra day a week.
Thank you for your advice.

[Peter Pedant]

// I wish I was only charged £9.40 on £873.//

well you should be if it were your only income
take 873 as a monthly wage - times 12 gives £10348

9900 is tax free amount leaving 448 to be taxed at 20% ( £90 give or take a drink ) and that is £7.50 as she says ( £9.40 )

[fairycakes69]

Thank you Peter Pedant .