I've been working in the UK for 8 months and told by the Inland Revenue that I'm still paying emergency taxes, as the tax code on my wageslips is BR. In November 2006 I applied to have my money back but I've just received a letter from the Tax Inspector telling me that my correct tax code 2006/2007 is 503L. Checking on Internet I've found out that BR isn't an emergency tax code, and that 503L is the real one. What does it mean? Is it all right, am I going to receive back my emergency taxes or they have made some mistake? Thank you!
2007-01-30 07:00:45 · 0 answers · asked by bordereye 1 in Business & Finance ➔ Taxes ➔ United Kingdom
BR is NOT an emergency tax code. The emergency tax code is 503L.
BR stands for basic rate, and a tax code of BR means all your income from that job is taxed, and that you are not receiving any tax free allowance. BR is usually used if you have a second job. Since all your tax free allowance is being used up by one job, all of your income gets taxed in the second job.
Tax code of 503L means you get an annual tax free allowance of £5035 - ie thats the amount you can earn in one tax year that is not taxed at all. (Its not £5039 as stated in another response).
If your correct tax code for the 2005/6 year was 503L but BR has been used, then you will have overpaid tax and are entitled to a refund.
2007-01-30 22:59:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
BR means Basic Rate, and you are correct it is not the emergency code.
503L means that you are allowed to earn 5039 pounds per year tax free. Since tax is calculated cummulatively normally (except when on emergency code), you should get it all back in your first pay packet once your new code is implemented.
It is definitely 5039 when using computer systems!!!!!
2007-01-30 07:08:03 · answer #2 · answered by spiegy2000 6 · 2⤊ 0⤋
BR is an emergency tax code, u will get taxed above the standard rate, 503 means u can earn £5003 before being taxed, ie 5003 is free pay..apply to the inland revenue for your tax refund, your employer might refund you by a) a tax refund and/or b) exempting u from paying tax till you have recouped the overpaid amount
2007-01-30 07:07:54 · answer #3 · answered by scotgal 4 · 0⤊ 0⤋
If your weekly payslips are recent e.g the last 4 weeks then 522L is your tax code for 2007/2008. If you recently received your P60 it is for the tax year 2006/2007 so its has your tax code from that year on it i.e 503L.
2016-03-13 09:33:42 · answer #4 · answered by ? 4 · 0⤊ 0⤋
from what i know "BR" is emergency tax, but will change to 503L, you should recieve the difference in april "end of the tax year"
2007-01-30 07:06:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋