Tax code K450

[rihanna4]

Hi Mumsnetters - any idea what tax code K450 means?

Thanks! X

https://paycircle.co.uk/support-article/what-is-a-tax-code-and-what-does-my-tax-code-mean/

K usually means you have another source of income or are repaying tax from another year.

Thank you. If £4500 is being added to my monthly pay so that more tax can be taken, then HMRC must believe I owe them a lot of money. I'd better call them....

Thanks so much!

I read it as to your annual pay rather than that amount a month, but yeah call them if you think it's wrong!

I think it may be monthly as the amount of additional tax which I think they're taking is so large. Thank you

You will have no personal allowance plus you are paying additional tax on a further £4,500 a year

They think you owe them money or you have benefits like a company car

They will have sent you a notice when your code changed explaining why it is what it is

But get on the phone at 8 and get it changed if you don't have other income / owe them money

Have you had a bonus? We get paid a bonus in month 2 of the tax year and it sends my tax code awry as it doesn't realise you won't get it every month and assumes you have a new net pay. I always have to contact them to correct it.

@Fluffycloudsfloatinginthesky This is really concerning ... thank you for sharing this. Yes I get an annual bonus and I really hope they don't think I get it every month. Although can't they see that I don't...? This could explain why they started applying K450 and taking so much more each month.

@PickledPurplePickle Thank you.

I have a K tax code because I receive annual income from:

• main additional rate tax job
• annual bonus
• NED jobs x 2
• rental income from second property reported via self assessment

Also, if you have changed jobs in the middle of any given month, it's possible that HMRC may think you have two jobs, as they may have received month end payroll submissions from two employers for you.

In any case, I'd ring HMRC to sort it out, as although you may be a while on the phone, whatever change they make will be reported to your employer straight away using RTI, and should be corrected in that months payroll.

@rihanna4

Did it take you over £100k if that was what you get every month? I just changed estimated salary back down online on my account and it corrected itself - it was mid month and pay at the end of month was fine so it didn't take long.

@Fluffycloudsfloatinginthesky Yep took me over £100k.
Will look at my online account. Thnx

Just spoke with HMRC. They said that in months 1-4 of the current tax year I was getting a personal allowance whereas I wasn't entitled to any personal allowance, so I'm now paying back the tax on the personal allowance corresponding to those months. They said I have nearly paid that back and will get a new, normal code in April and should take home a bit more money from then.

Also, HMRC raised the bonus point. The HMRC rep said she wants to check that HMRC's systems haven't assumed that my annual bonus is a monthly event. So she checked that and it wasn't the case.

I was going to add untaxed interest on savings.