Problem with my Tax Code 672l !??!?!?!?!??!

[LidiaM]

Hi there,
My husband has 2 jobs.
at his first job he does 35 hours and atbhis second job he does 25 hours
He has been given payslip from his main job and ofcourse, they have taken way too much tax .
He is on 672l /0 tax code. can anyone explain what does it mean ?
I believe it should be BR having 2 jobs and paying 20% of wages .
I am so angry because mones have been tight the last few weeks and we have been happy to finally get paid tomorrow and this happens.
Looks like he has paid over 50% of his wages.

Call HMRC - I found them helpful when they had assessed my tax code incorrectly due to having a month of 2 salaries coming in.

His second job should be BR.

672L means your dh is being taxed on anything he earns over £6720.00, whether it is correct or not depends on how much tax he has paid in previous years. It also might be that his second job isn't being taxed at BR, that the tax office have put them together.

The best thing is for your dh to phone the tax office.

The system is designed to put your full tax allowance on your primary employment, and your second job is taxed at BR.

That works if job 1 is above your personal allowance (which is sounds like his would be) and job 2 doesn’t take you above the 20% tax band. (I’m answering for England & Wales, not Scotland)

If that doesn’t calculate the correct tax, then HMRC can split your tax code.

672L looks close to 50% of the current 1250L for a simple annual allowance. Has he asked them to split his tax code? That would increase the tax on Job 1, but decrease it on Job 2.

He should speak to HMRC.

wait until Monday before ringing - last minute panic for self assessment today There is a twitter account for general questions - @HMRCcustomers (I have used it & it was helpful

He has been given payslip from his main job and ofcourse, they have taken way too much tax

Why do you say of course? You need to give a bit more info, is this the first month he's had 2 jobs? Has he had any correspondence from HMRC, does he know any reason he might have paid the wrong amount of tax in the past?

If he's had 2 jobs for a while the change might not be anything to do with that

Sounds like they have split the tax code across his two jobs.

Have you checked his other job payslip to see if his remain allowance is set against there?

@Ellisandra I have just checked the other payslip from other job and they have not taken any tax and the tax code is 577t. Any ideas what does it mean ?
he is staying withing the 20% rate limit so he should have the normal 1250l tax code at 1st job and BR at another. :(

Any ideas what does it mean OP you need to speak to the experts, the tax office. No one here can help you unfortunately.

They’ve split the allowance across the two jobs. Assuming that the 2nd job doesn’t pay less than about 6k pa, then there is effectively no difference in how much he’s paying overall, it’s just which job he’s paying it on.

577+ 672 = 1249.

T in the code means they’ve used an additional calculation to decide on the tax code, you should have a Coding Notifictation form which shows how they’ve worked it out.

They’ve split the allowance across the two jobs. Assuming that the 2nd job doesn’t pay less than about 6k pa, then there is effectively no difference in how much he’s paying overall, it’s just which job he’s paying it on.

This, it sounds like he's paying about the right amount, but most of it is coming from job #1. But call the tax office.

You can ask them to split the tax code between the two jobs as suits you best. I used to do this, as neither job used the whole amount. One job was a fixed salary, and the other fluctuated, so I put the amount of the fixed salary on that one and the rest on the other. I could ring them up to adjust the split at any point.

They do seem to work things quite well between different jobs. When I quit one of my jobs, I'd paid 80p tax as I'd had a pay rise since telling them the split. The next month, that 80p appeared as a credit on my other job's payslip!

672 +577 gives the 1250 code (well, 1249) so the tax has been split across the 2 jobs.
What you loose on the first job, you will gain on the second (assuming he earns more than 7k in first job and 6k in second)

So you're getting the same amount of
£££ just split differently.

If for some reason you want to get the ££ from one employer just ring HMRC and ask them to change it back

As others have said - now you’ve confirmed the other payslip is 577T, I was right that his tax code has been split. I thought that usually happened on request, but I may be out of date.

It’s a simple request so just call HMRC on 0300 200 3300, make sure he has both payslips.
They’re open until 22:00. Don’t worry about not calling because of Self Assessment deadline. I was through in 3 minutes on Monday - it may not be a long wait! Better to just get it sorted and off your mind!

www.thesalarycalculator.co.uk/salary.php

This is a good site to check your tax.
Just as an example, i checked minimum wage £8.71, which at 35 and 25 hours gives you an annual gross salary of £15852 + £11323 = total £27175.

If you do £27175 in the calculator with a 1250L code, you’ll see monthly tax of £244.58

If you do £11323 as 577T you get £92.55 tax and month.
£15852 as 672L gives you £152.20.
Added together: £244.75.
It’s pennies out (because of rounding, it would be adjusted slightly)

So you can hopefully see that split codes do work.

It’s a bit strange that you say be paid no tax on Job 2 (25 hours) payslip. But maybe he started mid month? If he has had the code split, but only started Job 2 recently and didn’t have a full month of pay, it won’t have balanced out this month. But it’s hard to say without knowing the details!

He certainly shouldn’t have lost 50% of Job 1 to tax. Are you adding in NI too?

Don’t feel you have to answer, you are anyway better off calling HMRC. I find them very helpful.