Tax Code 2007-08

Tax Code 2007-08

Didn't find your answer?

Hi Everybody

If we have employment income in 2007-08 and tax code shown in P60 is 453L. Is this correct tax code for this year if the employment income is £200k for the year.

Thanks in advance

Replies (4)

Please login or register to join the discussion.

By petersaxton
09th Jun 2012 18:32

Circumstances

It depends on the tax payers circumstances.

Why are you bothered about the tax code? The tax payable and paid is what is important.

Thanks (0)
avatar
By ayaz786ahmd
10th Jun 2012 06:46

Because

 

 

 

I am concerned because with tax code 453L , £250 extra tax has been charged on my employment income

Thanks (0)
avatar
By ACDWebb
10th Jun 2012 08:13

2007/08 the basic single PA was £5,225

so on the face of it there was a net deduction from those allowances of £690.

Perhaps you had an adjustment for benefits in kind received from your employer - private medical for example.

Are you saying that you have now had a demand re that year from HMRC for £250 as part of the sweeping up of back years they have been carrying out (and creating so much furore in the press) in recent years?

Thanks (0)
Euan's picture
By Euan MacLennan
10th Jun 2012 10:32

Employer has no option

... but to operate the PAYE code advised to him by HM Revenue for existing employees or the code on a current form P45 for new employees.  It is the responsibility of the employee to contact HM Revenue if they think that their PAYE code is wrong and get them to issue a new code.

It is a long shot, but 453L was the standard code for the 2001/02 tax year.  Is it possible that the employee produced an old 2001/02 form P45 when starting work with the new employer in 2007/08?  If so, the new employer should have ignored the old code and applied 522L on a Month 1 basis.

Otherwise, I agree with the other replies.  The PAYE code is merely a payment on account system intended to pay the correct tax each month, but what matters is the actual tax liability on the whole year's income, against which any tax paid under PAYE will be credited.  As the code was less than 522L for 2007/08, it suggests that either there were taxable benefits-in-kind to be reported on form P11D or perhaps, that there had been an underpayment of tax in an earlier year which was being recovered in 2007/08.

Thanks (0)