What does Tax Code OT mean?

[KatieMac]

Nothing else to add really

OT means no allowances have been given or remain after other adjustments have been made. Tax will be paid at the lower, basic or higher rate, depending on the level of income.

Can you tell I cut and pasted

Helpful info here

Thank you

That means my employees Tax code is wrong - she should be 795 apparently

Out of curiosity, who is saying it should be 795? From OT to 795 is a drastic change in the opposite direction!

She has another job (earning aboput 4100) so hopfully she should get about 795 from me tax free before paying tax at 10%

That wouldn't make her tax code 795 though.

OK - so do we know what it should be the IR is messing her about

OK - so do we know what it should be the IR is messing her about

Out of touch with rates now so not even sure what basic single persons code is, sorry, but the general rule is stick 5 on the end of the code and it tells you what they are entitled to earn tax free each year.

So a code of 795 would allow her nearly £8K a year tax free!

She really needs to hassle the IR to get her code changed - you must pay her under the code they have issued until they tell you otherwise unfortunately.

sg!! sorry to butt in on this thread but i need you a second!! on the reg thread thanks

Right, just checked. Standard 'normal' code is 486 so that allows approx £4860 per annum.

She has roughly £760 free pay left so would assume code should be in the region of 76 but don't quote me on that. There might be other variables that have to be taken in to account that only the IR can decide.

Thanks again we knew it was wrong but didn't know why
Really appreciate your help

It isn't wrong!!

OT is basic rate tax but with the benefit of the 10% rate (usually a BR code would tax all your income at 22%- with OT you get the 10% rate on the first £2020)

rates here