Tax Code

[Karamia]

I appear to have been put on an emergency tax code because, after the number with the L, it says M1. I am very puzzled as to why this has happened as absolutely nothing has changed in my circumstances. I do not work and receive my work pension. What should I do about this matter? Is there anything to be done? Why would I suddenly be put on emergency tax code?

[barry1010]

Phone the tax office, it's your only option

[Canary42]

Ring HMRC - I've always found they're obliging and helpful.

[newmodarmy]

from the hmrc site

If your employee’s tax code has ‘W1’ or ‘M1’ at the end

W1 (week 1) and M1 (month 1) are emergency tax codes and appear at the end of an employee’s tax code, for example ‘577L W1’ or ‘577L M1’. Calculate your employee’s tax only on what they are paid in the current pay period, not the whole year.

 You'll need to ask why but should have been notified.

[Skyline D]

Notwithstanding what newmodelarmy posted, M1 isn't as such an emergency code. It just means they tax every month as if it's your first month and they don't take any account of the cumulative totals for the year. It would normally happen if there's something confusing about your cumulative tax position but ultimately, if your income is the same every month, having an M1 suffix will make absolutely no difference to your monthly tax total. It will be the same as if it wasn't there.

[newmodarmy]

//Notwithstanding what newmodelarmy posted, M1 isn't as such an emergency code. It just means they tax every month as if it's your first month and they don't take any account of the cumulative totals for the year.//

It was HMRC themselves I was quoting. Their site says "W1 (week 1) and M1 (month 1) are emergency tax codes and appear at the end of an employee’s tax code..."

Anyway, whatever it's called the effect is the same- it doesn't take account of the cumulative position.

[davebro3]

M1 is often applied when there is an underpayment of tax & operating cumulatively would make an excessive deduction in the next month. If you don't choose to follow it up now it will be reviewed at the year end (just over a month away) and any necessary adjustment made.

[davebro3]

BTW - did the code number change when M1 appeared?

[Karamia]

Thanks for all the answers.

Late update for anyone interested: only just received the paper work explaining all those changes to tax code and the use of emergency tax code. In the end it was all to do with untaxed savings which I had owed from year 2023 to 2024 (and only because I had used up my ISA limit that year and had put other money into a savings account) However, because of that the HMRC had applied a 'guess' as to the same thing happening at the end of this tax year (which hasnt ended yet) and had even kindly applied a 'future guess' for the forthcoming year 2025 to 2026 for the same amount!! Once I worked all this out and asked them to remove all the prediction amounts, my code went back to more or less what it had been originally. Had I not challenged though I would have been paying far too much tax for the coming year unnecessarily. I know it would have worked out as refund eventually, but prefer not to be overcharged in first place. 

Anyway... glad it all sorted now, plus got through to hmrc surprisingly quickly to get it corrected.

Thanks again!

 

[barry1010]

Pleased it's sorted, I've always found the taxman (and woman) to be helpful