tax code error

[kimmy121]

Hi
Can someone help me with a payroll query.

My payslip states tax code 565L and it has done since last April.

I've just gone through some old paperwork and found a letter dated Nov 2011 stating that my tax code for 2012/2013 will be 865L.

i will call the tax office at some point this week, but can anyone help me understand what the result of this error is likely to be?

thanks
Kim

When you received notification of your change of tax code, your employer should have received it too and should have made the appropriate changes. I'm not familiar with either of those tax codes, but 810L means you can earn up to £8100 a year without paying tax.

Assuming you didn't get a subsequent letter giving the 565L code (I think I've been sent about 4 for this tax year!) and that you earn more than £5650 per year, then you will have paid too much tax. Depending on your tax rate the overpayment for the whole tax year would be £600 or £1200

Get on the phone to your payroll department as it looks as if they have not been using the right code

If I remember rightly they did send out some incorrect tax codes a year or so ago to hundreds of people. As threebeeonegee has said, it is an odd tax code. I would ring your tax office first and double check that code and then if its correct, getting them to resend it to your employer. And then chase up your payroll department.

It's not an "odd" tax code.

Given that there is only one digit different and 5 is below 8 on a numeric pad the most likely explanation is that your employer made a mistake when entering the revised code (they are sent a letter similar to the one you have).

You will have had too much tax deducted through PAYE (£500 too much by January and £600 too much by the end of the year).

The simplest way to fix this would be to contact your employer's payroll department and get them to recheck their input from the coding notice. If they do that straight away it should correct itself automatically.

If you can't get this fixed by the end of the tax year you will need to wait until end of year reports are filed (deadline 19 May) and then call HMRC and request a P800 as explained here.

thanks for your answers.. think ill ring payroll in the morning. or maybe email, she's not the most pleasant person to deal with, especially not first thing on a Monday!

I've found out the 565l is to do with my company car benefit. but that went back today, do my tax code is likely to change to 810l then, isn't it?

thanks

Thanks Mr anchovy! Very helpful.

"I've found out the 565l is to do with my company car benefit. but that went back today, do my tax code is likely to change to 810l then, isn't it?"

Really? So your car benefit must be somewhere between £2,995 and £3,005 AND you must have not received or mislaid an amended coding notice (unless you are misreading the one you have?). I'd still bet the next round of tea on it being a typo, but if the payroll woman is the fire breathing kind it is probably not a good idea to suggest that to her!

Your tax code won't change automatically until after HMRC has processed your P11D - at least 6 months - but you can ring them and tell them the car has gone back and they will send a new code, but this won't get to your employer in time to use it this year so you will get a new code for next year. What that will be depends on any other taxable benefits you receive, expenses you claim, whether HMRC make an adjustment to take account of any overpayment this year, the state of the tide at London Bridge...

Lol - Mr Anchovy about the state of the tide at london bridge,

Yes - getting the revenue to change codes is like needle in haystack times

But if you had a company car benefit for 12/13 = then your tax code would be lower to account for the additional benefit you receive from the car

I can only assume the original higher code took into account something such as professional subscriptions you pay and don't get relief on.

and them HMRC have reissued a code (as stated lots of incorrect codes were issued and continue to be so - important to check them) and you did not receive this or have mislaid it

to me - if you have a company car the code 565 seems about right

Your firm needs to complete a p46 car form to show that you no longer have this benefit or you can phone HMRC and tell them yourself but they will likely await official confirmation from your employer either via the p46 which should be completed and submitted once you no longer receive the benefit or if the payroll dept dont do this it will be done via the p11ds to be completed for this tax year and they are not due to be submitted until 6 july.