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AIBU?

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Original poster

Tax code change?!

26 replies

tiredmama23 · 27/10/2023 06:38

Can anyone help (sorry not an AIBU!)

I started a new job (NHS) at the beginning of September. At the end of Sept I was paid and my tax code on my payslip was 1257L. I've been paid today for this month and I've been paid £140 more than last month. The only difference I can see on my payslip this month is that my tax code has changed to 1261L. Is this likely to be an error? I don't want to spend the extra money if so! Obviously I plan to speak to payroll later today to clarify but wondered in the meantime if anyone on here could shed any light on whether this is likely to be correct or an error after starting a new job?

Thank you!

OP posts:
Aprilx · 27/10/2023 06:42

The change in your tax code indicates that tax office believes you may have over paid a bit of tax and this is a way of refunding you. However a small change like that should not result in an extra £140 per month, so I would actually look at your pay slip again and see what else changed in the gross numbers.

PurpleNebula84 · 27/10/2023 06:47

Are you a nurse or wear a uniform? If so, you can claim uniform washing tax relief which is £37... Which if added to your tax code would make it 126L.
Do you pay into a union? As you can also claim tax relief on that too I believe.

Original poster
tiredmama23 · 27/10/2023 06:48

Not a nurse.
And I've checked other details on my payslip, all the same as last month. Only change is my tax code and I've got £140 more net. Which doesn't make sense to me either!

OP posts:
Original poster
tiredmama23 · 27/10/2023 06:51

If it was a tax refund from an overpayment would that not show on my payslip as "tax rebate" or similar? There's nothing like showing. Very odd.

OP posts:
PurpleNebula84 · 27/10/2023 06:51

Did you start part way through the month? Even a few days might alter how much the monthly pay is... Some places (even if the pay isn't a salaried post divide it by the number of days) Oct is also 31 days, so a longer month.

AfterWeights · 27/10/2023 06:52

Have your pension contributions started? Often they don't start in the first month for admin reasons.

That tax code change would not give you £140 a month more, its something else.

Is it a higher salary?

AfterWeights · 27/10/2023 06:54

If it was a tax refund from an overpayment would that not show on my payslip as "tax rebate" or similar?

No. They just adjust your tax code but you'd have had a letter.

That tax code change is not very big, its an increase to your tax free allowance of about 50 quid, its only worth about 20 quid across the whole year so its not that.

Its most likely:

  • pay increase
  • a car or clothing allowance
  • a lack of usual pension contributions
Aprilx · 27/10/2023 06:59

tiredmama23 · 27/10/2023 06:51

If it was a tax refund from an overpayment would that not show on my payslip as "tax rebate" or similar? There's nothing like showing. Very odd.

No it would not show like that, it would simply be a calculation.

Original poster
tiredmama23 · 27/10/2023 07:01

Pension contribution is the same as last month, same rate and amount etc. I started the job at the start of the month (1st September) and get paid in arrears in the 27th of the month, so not part way through.

Only difference on my payslip like I say is the change to 1261L and my tax deduction is £140 less. NI and pension identical to last month. I'm stumped!

OP posts:
Aprilx · 27/10/2023 07:03

tiredmama23 · 27/10/2023 07:01

Pension contribution is the same as last month, same rate and amount etc. I started the job at the start of the month (1st September) and get paid in arrears in the 27th of the month, so not part way through.

Only difference on my payslip like I say is the change to 1261L and my tax deduction is £140 less. NI and pension identical to last month. I'm stumped!

Was there anything following the tax code in the first month in particular? Like M1?

BobblePin · 27/10/2023 07:04

The tax man cometh

Original poster
tiredmama23 · 27/10/2023 07:14

Yes letters look different - last month was 1257L non cumulative. This month is 1261L cumulative.

OP posts:
Randomness12 · 27/10/2023 07:20

That is part way through the month, if you get paid on the 27th but didn't start until the 1st that means you missed 3 days in your last payslip as you didn't work the full month. Depending on your banding that could explain the difference, and therefore your gross pay should be slightly higher than last months?

Original poster
tiredmama23 · 27/10/2023 07:22

Randomness12 · 27/10/2023 07:20

That is part way through the month, if you get paid on the 27th but didn't start until the 1st that means you missed 3 days in your last payslip as you didn't work the full month. Depending on your banding that could explain the difference, and therefore your gross pay should be slightly higher than last months?

This makes sense and might explain it, however I'm part time (30 hours a week) and my hours on both payslips are showing as 30. Would the hours not show as less if I wasn't paid for a full month? Or am I getting confused here now? 🙈

OP posts:
Original poster
tiredmama23 · 27/10/2023 07:23

Also does anyone know if the "cumulative" showing this month after the tax code versus "non cumulative" last month would make a difference?

OP posts:
pumpykins · 27/10/2023 07:24

Email the payroll team and ask

Chasingsquirrels · 27/10/2023 07:27

tiredmama23 · 27/10/2023 07:23

Also does anyone know if the "cumulative" showing this month after the tax code versus "non cumulative" last month would make a difference?

Ta da! That's your answer.

AlexandraJJ · 27/10/2023 07:29

Cumulative tax calculates tax owed year to date, non cumulative is tax for that period only. Looks like the timing of when you started was slightly out of sync with HMRC therefore you had previously paid too much tax and have been refunded

Chasingsquirrels · 27/10/2023 07:30

So, last month you hadn't been properly processed as a new starter and were on single month calculation.

This month they've had a change of tax code AND brought in your cumulative to date figures and that's impacted the cumulative tax figures and the adjustment has been made in the current month tax.

What was your tax code in your last job or have you had a gap (so some unused tax free allowance)?

Original poster
tiredmama23 · 27/10/2023 07:33

Thanks all! So does anyone know, will this by my tax code going forwards or likely to be just for this month? Obviously I'll get clarify from payroll at lunch time anyway but the collective knowledge on here is great so thought I'd ask!

No break in employment, moved from one nhs trust to another straight away. Can't recall my previous tax code tbh but I can check old payslips later.

Thanks again all!

OP posts:
MoralOrLegal · 27/10/2023 07:35

It's as PP have said, the "cumulative" thing can make a big difference if you've had a gap between jobs. "Non-cumulative" assumes that your tax-free allowance for the month is 1/12 of your annual allowance. If you have any unused allowance, from a month without work for example, it wouldn't have been rolled over. "Cumulative" catches things up on a longer basis. (I think that's right!)

weathervane1 · 27/10/2023 07:37

I've had a few tax code changes over the years and each one had been accompanied by a letter informing me of the new code, with an explanation on the back explaining the change. You haven't mentioned getting a letter OP - is it possible you did get one and maybe binned it as junk mail or similar? If not, there should be a letter in the post. Only HMRC can issue tax code changes, not your employer, and they have to inform you. There is a tax code number you can call on the web site and they are usually very helpful - if you can get through. Good luck 😀

shoeawsome · 27/10/2023 07:54

1257L is the basic tax code so if your tax code is 1261L then there is an allowance of some sort added to it.

That plus the change to accumulative would have made the difference.

Can you log into your HMRC Account? That should show what the change is.

Newname2308 · 27/10/2023 08:16

Download the HMRC app, I’ve found it useful for stuff like tax codes and also for getting my letters. Keeps all the info together!

CaputDraconis · 27/10/2023 08:48

1257L is the standard tax code for 1261L has an allowance on top.

Even though you are paid on 27th as you are paid in arrears it will have been for the period 1st to 30th September so you will have been paid for the full month. Likewise October will be 1st to 31st paid on 27th etc.

Cumulative means the tax code has been backdated to the start of the tax year and as the new tax code is higher you have had a bit of a rebate this month. Your net pay next month won't be as high as this month because of this rebate.

I would definitely check your online account or call HMRC on 0300 200 3300 to check the new code is right. As if it isn't right you will be underpaying tax and they will ask for it back.

No point calling your payroll team as they just operate the code provided to them by HMRC and they will tell you to contact HMRC.