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What does Tax Code OT mean?

(15 Posts)
KatieMac Tue 31-May-05 20:31:09

Nothing else to add really

SaintGeorge Tue 31-May-05 20:34:07

OT means no allowances have been given or remain after other adjustments have been made. Tax will be paid at the lower, basic or higher rate, depending on the level of income.

kama Tue 31-May-05 20:34:51

Message withdrawn

SaintGeorge Tue 31-May-05 20:35:08

Can you tell I cut and pasted

Helpful info here

KatieMac Tue 31-May-05 20:43:04

Thank you

That means my employees Tax code is wrong - she should be 795 apparently

SaintGeorge Tue 31-May-05 20:45:30

Out of curiosity, who is saying it should be 795? From OT to 795 is a drastic change in the opposite direction!

KatieMac Tue 31-May-05 20:48:04

She has another job (earning aboput 4100) so hopfully she should get about 795 from me tax free before paying tax at 10%

SaintGeorge Tue 31-May-05 20:54:07

That wouldn't make her tax code 795 though.

KatieMac Tue 31-May-05 20:55:15

OK - so do we know what it should be the IR is messing her about

KatieMac Tue 31-May-05 20:55:18

OK - so do we know what it should be the IR is messing her about

SaintGeorge Tue 31-May-05 21:00:17

Out of touch with rates now so not even sure what basic single persons code is, sorry, but the general rule is stick 5 on the end of the code and it tells you what they are entitled to earn tax free each year.

So a code of 795 would allow her nearly £8K a year tax free!

She really needs to hassle the IR to get her code changed - you must pay her under the code they have issued until they tell you otherwise unfortunately.

almostanangel Tue 31-May-05 21:02:54

sg!! sorry to butt in on this thread but i need you a second!! on the reg thread thanks

SaintGeorge Tue 31-May-05 21:04:26

Right, just checked. Standard 'normal' code is 486 so that allows approx £4860 per annum.

She has roughly £760 free pay left so would assume code should be in the region of 76 but don't quote me on that. There might be other variables that have to be taken in to account that only the IR can decide.

KatieMac Tue 31-May-05 21:08:42

Thanks again we knew it was wrong but didn't know why
Really appreciate your help

tallulah Wed 01-Jun-05 18:18:15

It isn't wrong!!

OT is basic rate tax but with the benefit of the 10% rate (usually a BR code would tax all your income at 22%- with OT you get the 10% rate on the first £2020)

rates here

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