www.iva.co.uk

hi guys,

Does anyone understand tax codes and why if your tax code remains the same over a few months, the amount of tax paid changes each month?

Eg. My tax code hasn't changed from last month, but in my pay for Nov - I'm £23 less than last month.
I am on a salary so I would have assumed it shouldn't really change month to month if my Tax code is the same. My Nat Insurance has remained the same.

Maybe I am being really stupid! It doesn't help with the budgeting in an IVA, when one month you end up loosing £23!

Hi Susie.

No idea I'm afraid. My tax code has been the same for a while and the only time my tax paid alters is if I earn more one month rather than another.

Has your income changed at all?

Hi Jan,

No, income the same, exact same monthly gross amount, just the tax has changed.
It's really frustrating as you try to budget from 1 month to the next and then you don't get paid as much.

I plan to speak to Payroll but they normally just fob you off with some reason or other plus they are in some god knows where country! the joys of working for a global company!

Having a nightmare with letters from Tax just now, last year they said i had underpaid by £90 so adjusted tax code to claim it back, then in August this year, got another letter saying i had underpaid by £1000, so amended Tax code again. Then next day ( yes the very next day), another letter saying I was only underpaid by £50 now and tax code went back up again.

It's now at the code in the final letter i received ( with the £50 underpay) and its been that for 2 months! Last 2 monthly payments same amount, until the one I will get tomorrow!

Depressing seeing the payslip!

Hi Suzie

I had a similar situation this year, my tax code changed from an L code to a K code. This made me worse off by £130 a month and my IVA has been left short by £840 in the final

Anyway, I have my payslips and Tax coding notice ready and my IVA ends this month so Iam interested to see what they say and whether they except this shortfall.

My advise is speak with your IP directly and see what they say. Also it would interesting to hear what the IPs comments on this senario?

Best regards

Mark

Is your tax code exactly the same in the months you have noticed a fluctuation in your take home salary?

I know tax codes very well, i have a company car that changes all the time so does my tac code, one thing I will say is that the tax office dont get it wrong even though it takes time sometimes year to catch up with it, but one thing i do know is that they dont look at it by month, its done year to date, so they look at your salary year to date and tax year to date and make sure it line up, so something might change in my circumstances the car or just simply a new tax law, and you can end up paying more or less, from experience its a waste of time ringing them up, not only are you on hold for hours, but they wont dont anything, but and a a big but over time if anything wrong they will correct it

hi Mel,

on my pay slips for August and September, the tax code is the same and my take home was the same, so same tax/NI paid.
on my Oct payslip, tax code still the same, but i've paid £23 more tax this month so take home is £23 less than last month's!

It's just very confusing and short of phoning the tax - i'll be on the phone for ages, or contacting my payroll dept who i can only get on email, i'm stuck!

Tax/Tax codes confuse the hell out of me!..

Do you receive any benefits such as health insurance or a car that might have changed how much tax is taken? Tax is so confusing!!

Must admit that whenever we've phoned the tax office (and we had to a couple of weeks ago) we've been answered straightaway.

If there is a problem they will sort it out for you.

Yes - i do have BUPA and Healthcash plan for denistry etc via work but my tax code is already reduced to reflect this. It's just the fact that my tax code has been the same for 3 months yet this month i've paid more tax even though my basic monthly gross pay is the same!

Weird! I'm a woman on a mission today!...trying to get things sorted! ie Tax, expenditure, paperwork all sorts! on a day's leave so using it to catch up!

Once you've gone through your paperwork etc then I would give the tax office a ring to see if they can assist you. I've always found them very helpful.

You were lucky Jan! When I spoke to them they were next to useless and couldn't explain what was wrong with my tax code - I ended up getting the accountant at work to explain the them. They were taxing me for a benefit I no longer had and when I questioned it they issued another code, taxing £1 for the same thing as they couldn't delete it from the system. I know it was only a pound but there was a principle and in the end they did it. Useless!

They weren't actually able to tell us what extra tax hubby will be paying on his occupational pension in December but when I've contacted in the past about child tax credits then I always got an answer straightaway.

Is your tax code this month got a 1 after it, denoting week/month 1?

If not if you post your wage slip details for the last few months I will have a look for you.

I run the payroll for a company with 50 plus employees.

I'd ring the tax office. Ring the landline number for your tax office not 0845 & I've always found it quicker. Kirsty makes a very good point. Have you had the same job for the last 6 years with no second job? If so I'm unsure why they would alter this.
Hope you get sorted & have an easier time than me with my debt with HMRC! Let's say 12 months I've reduced from £1500 to £400 by ensuring they had the correct income details! I'm paye but have 2 jobs so they always blame that!