tax code notice

[srhbit]

hello

i have just recived a letter with my tax code for 2010/2011 and it says my tax code will be` OT`

can any one help me understand this as i am working and on about £10,000 ( TEN GRAND PER YEAR ) full time paid monthly

my tax code for this year is 674L

i tryed the hm customs income tax web sight but can`t find out why its changed

thanks srhbit

[honeybee13]

Hello. 674L sounds to me as if they have given you the normal Personal Allowance of £6,475, being the amount you can earn before they start deducting tax from your earnings. [Actually, that could be last year's PA, I need to look on the HMRC website in a minute.] A tax code is the amount you're allowed for the year, with the last digit left out. I hope that makes sense . If not, please shout! So a tax code of £6,475 means that your tax-free allowance is between £6,470 and £6,479 for the year. In the letter you have, does it mention what your non-taxable allowance is?

 

Any income over £6,475 would be taxed at the basic rate of 20%.

 

You say your code has changed, which is normal from year to year. Can you tell us what it's changed from please?

 

I leave it to others to comment on whether there might be other tax credits allowed to you. I only understand Income Tax.

 

I'll have a look at what OT means, if I can find it, and re-post.

Edited January 15, 2010 by honeybee13

[honeybee13]

Hi. According to the HMRC website, the Personal Allowance is staying the same, being £6,475 for 2010/11.

 

A code of OT seems to contradict this. Have you had more than one coding notice?

 

My suggestion would be to ring your tax office or the helpline, to discuss your position. It's important to make sure they've entered the right information about you. Often a mistake in this can affect your tax code and your income.

 

Try to keep cool. Their job is to make sure you understand and people ring up every day about this sort of problem.

 

If I haven't explained this properly, or HMRC give you an answer that you don't like, please let us know.

[RaeUK]

Hi, as honeybee says, it all looks very odd.

Here's a linky thing to a guide to tax codes - it's very simple, short and straightforward.

Looks like a call to your tax office is on the cards!

 

A guide to UK tax codes

 

Best wishes

Rae.

[srhbit]

hi

thanks for all your replys

i rung the tax office this morn (sat) and gess what they made a mistake i should be on the basic tax code for 2010/2011. so they said they change it and send a new letter out

 

i found out that the 0t code is if people who have used all there tax alowance or students so it means that you pay tax on the full amount that you earn in one year thanks srhbit xxx