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Original poster

Anyone knowledgeable about tax codes?

7 replies

WaxOnFeckOff · 13/02/2021 21:24

I got a prompt from HMRC about a tax code change - went onto the website and looked at it. I've claimed the work from home allowance which they indicated would adjust my code so I expected to have an increase and thought that's what it would be, but it seems to have been cancelled out by some other amounts but I'm clueless as to what they are for and why. I'll post a photo of what it is in the posts below.

Thanks for any help :)

OP posts:
Original poster
WaxOnFeckOff · 13/02/2021 21:26

This:

Anyone knowledgeable about tax codes?
OP posts:
trilbydoll · 13/02/2021 21:29

Do you earn in that band where you start losing personal allowance? At £100k you lose £1 of personal allowance for every £2 you earn (that's from memory, it might be £125k, I haven't checked!)

Original poster
WaxOnFeckOff · 13/02/2021 21:34

Hmm, i don't earn at that level but i do earn about £700 pa into higher rate tax (in Scotland) so will it be that then?

OP posts:
MiaFarrowsWheelbarrow · 13/02/2021 21:34

We can't really comment without knowing your total income and what rate band HMRC are using to make a calculation.

Original poster
WaxOnFeckOff · 13/02/2021 21:39

@MiaFarrowsWheelbarrow

We can't really comment without knowing your total income and what rate band HMRC are using to make a calculation.
Ah okay, thanks :)

Given that i just squeak into Scottish higher rate band, would it be worth seeing if I could pay that amount into my pension instead via salary sacrifice or would that not make any difference?

I should really know more about all this stuff by now.

OP posts:
trilbydoll · 13/02/2021 21:42

If you salary sacrifice then it goes out before tax, so you may as well take yourself back into basic rate if you can. Obviously putting £100 in your pension leaves you £100 down whereas paying tax on it is only £40 down so it depends how badly you need that £100 vs how badly you don't want to pay the tax!

Original poster
WaxOnFeckOff · 13/02/2021 21:47

I'm mid fifties so to be honest it's not going to grow much in my pension and as you say, i'd only be saving the difference in the 21% to the 41% really so not really that much, essentially my working at home allowance has just cancelled the increase out...I think.

Will maybe wait and see if I get any pay rise this year....not likely! But I'm glad I have a job when so many will be potentially losing theirs.

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