For the past three months i have been paying BR tax code. After numerous phone calls to the tax office and my payroll they have finally issued me with 503L, then i was told that next pay will be on a month one basis (which i assume will show as 503L M1?). And apparently i will not be getting my rebate. What does this mean? Will i have to pay excess tax again? Or less? And what about after that?
Additional Details
15 hours ago
I do have another part-time job. The revenue had actually sent me notification that my fulltime job will be on 503L so i rang payroll to make sure they have recieved it too... they hadnt... so i had to call the revenue to fax it over ... twice. The last time i called my employers payroll they said the months will be on a month one basis. I still dont understand the cumultative/non cumulative process. Its all too confusing!
2006-11-18 22:27:39 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
Actually i just had a thought. Im prob not owed any tax because i was in the P/T job for over four years whilst i was a student. I only started my F/T job since august.
Im guessing their gonna take into account the amount ive earned tax free in my P/T job since april? It was only about £200/month. So im guessing im the one owing them tax, not the other way around.
2006-11-20 06:03:24 · update #1
1st of all if the reenue have told your employer you should be on 503L then they are legally obliged to put you on this. It is not their decision to make. I suugest you inform them of this.
To explain the difference between month one and 503L. Being on month 1 you pay tax on that month alone and the earnings from the previous months are not taken into account. This based on your tax code allowance i.e. in this case you are allowed to earn £5035 per year without paying tax, if you split this monthly you are allowed to earn 419.58, on month 1 this is deducted from your pay and you are taxed on the rest regardless of previous earnings.
If you were not on month 1 then your previous earnings would be taken into account. i.e. if in you hadnt earnt any money previously in that tax year or you didnt earn enough to pay tax your monthly tax free allowance would be greater hence you would pay less tax.
For example if you didnt work for the first six months of the year and started work, you would be able to use the £5035 on the remainder of your earnings, i.e. you would be allowed 840(approx) per month without paying tax. Again hence you would pay less tax.
To know if you are on the correct tax code it is best to take both payslips to the revenue or call them up. it sounds as if you should be entitled to a tax refund.
2006-11-20 05:35:30 · answer #1 · answered by Joe C 1 · 0⤊ 0⤋
Yes your tax code is on a month one, it means that your earnings are not accumulative and you paying tax each month but not excess. This month one is usually used as an emergency tax code for employees who do not have a p45 so you will be paying the correct amount of tax for your earnings. When your p60 goes in at the end of the tax year the tax office will calculate your earnings and the amount of tax you have paid and will if need be send your employer another tax code to either rebate or collect the tax that was underpaid if any in the tax year 07/08 for this tax year. 503L M1 is better than BR.
2006-11-19 06:38:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I would head up the M1 to sort it out, on a more serious note, take it to your local Tax office, sit down in front of them with all your information, they will then explain it in detail and answer all and any question to your satisfaction, your local tax office will deal with it even if your place of employment is not in thier area
2006-11-19 06:37:50 · answer #3 · answered by john r 4 · 0⤊ 0⤋
what this means is you may have several documents with your tax code on.
as stated in this sub-link
http://uk.search.yahoo.com/search?ei=UTF-8&fr=sfp&p=what+does+m1+mean+on+a+tax+code&meta=vc%3D
2006-11-19 15:59:45 · answer #4 · answered by damienabes 1 · 0⤊ 0⤋