Tax Codes

Can someone explain how tax codes work?

Basically I’ve been on “1000t” and they’re putting me onto “1184T”

What does this mean?!?
 


Sounds like you have paid too much and now they are giving you back some through your tax code.

Basically for the first £11840 of your income you will pay no tax

Normal tax code would be 1150L which would mean £11500 without tax
 
It means your personal allowance is 11,840 and the T means:

"Your tax code includes other calculations to work out your Personal Allowance, for example it’s been reduced because your estimated annual income is more than £100,000"

Tax codes - GOV.UK

Apparently anyways. Could be wrong. Probably am. This does not constitute legally binding tax advice. Terms and conditions apply. Please see reverse for best before.
So, Pixie is selling that video then.
 
Can someone explain how tax codes work?

Basically I’ve been on “1000t” and they’re putting me onto “1184T”

What does this mean?!?

When you say putting you onto, do you mean next month?

If so, the standard is 1185L is the standard tax code. Maybe you just owe them a couple of quid. :lol::lol:
 
Aw I hope not! The last 3 years I’ve always had issues where I’ve paid too much!

If that's the code from next month then they're trying to recoup 16p a month from you over the next 12 months. Presuming you're not married and using some of your husband's tax free allowance of course.
 
No they said it’s for the next tax year

Aye, that's right then (next tax year begins next month btw). In that case you'll be paying about 16p per month more tax than you should be as you owe them £2.

I hope you don't miss it too much. ;)

Either you owe them money (£2), or they think you're going to earn £104,000 this year.
 
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Can someone explain how tax codes work?

Basically I’ve been on “1000t” and they’re putting me onto “1184T”

What does this mean?!?
It's good news, means your tax free allowance is increasing to £11840. If your code was previously going to be 1000T it means your personal allowance was originally going to be £10000. In real money terms you'll be around £368 better off. I take it this is for 18/19 tax year. You must have a very small deduction in your code still though as the personal allowance is 11850 for 18/19.

Aye, that's right then (next tax year begins next month btw). In that case you'll be paying about 16p per month more tax than you should be as you owe them £2.

I hope you don't miss it too much. ;)

Either you owe them money (£2), or they think you're going to earn £104,000 this year.
£2 is correct if they pay tax at 20%. Not if they are a 40% payer. If they were on £104,000 there personal allowance would be reduced to 9850 and a code of 985L
 
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