Thetownend.com

I got a letter from the Tax office saying my Tax code for next year is changing to BR.

Why would they suddenly change it to that?

Do you have a second job?

It means Basic Rate at 20% but you don't get a personal allowance as that is used up in the other job.

Forgot to say I looked that up on HMRC

No ive only got 1 job, the only thing thats changed is im doing a few more hours and getting a sporadic bonus but I dont earn big money or anything.Its got to be wrong hasnt it.

It's nothing to do with big money Yeo, it's basically saying you get no personal allowance on that income so you pay tax on all of it. It's wrong as you pointed out.

Ring them up pronto and enquire with your employer too.

I got that letter as well. I rang up HRMC and they said they had made a mistake and I was on their records twice. All they need is your payroll/employee number and they can fix it.

Confusingly my tax code for next year (2010-11) is 534L (personal - medical insurance). They say that this will be forwarded to my previous employer (why?) and that it will be used to work out my tax when I come off of jobseekers allowance.

So, and I know I should know this, are they working it out a year in arrears so the medical insurance deduction is for LAST year. Or what? Only my next employer just gives a cash % above base salary and lets me get my own insurances as I see fit.

Batch, I'm no expert, but your code for 2010/11 will be based on the same assumptions as previous, so if you're no longer receiving private medical insurance it'd be worth ringing the tax office and letting them know, so they can adjust the 2010/11 coding.

Your previous employer will have to inform HMRC by July what your benefits in kind (PHI) were for 2009/10 tax year so if you left during the year you may well see the value of your benefit fall, and your coding for 2010/11 being adjusted upwards to compensate.

ta.

Organise.  Brewery.  Couldn't.  Piss up.

http://news.bbc.co.uk/1/hi/business/8478271.stm

I always check my pay on listentotaxman.com when it varies from the norm, it works out what you should be getting

Whoops maybe your one of these

http://news.bbc.co.uk/1/hi/business/8478271.stm

Great minds...

I was on BR for a while 2 years ago. When I realised I was on emergency tax I got a nice £1080 rebate!

My pay the other day was emergency taxed cos my previous employer was slow sorting out our P45s. We're getting the money back in next months pay.

It means Bangkok Red gets some of your tax.

Got my notification of tax code through today. Unsurprisingly it was wrong (got the BR code too).

Means band rate..theyve messed up big time...i got the same letter,ring your local tax office...Gloucester and insist they make a note of your current tax code and they will put it on your file....a poxy computer has cocked up big time.

They make the tax and benefit system so confusing, that many people are probably paying too much tax or not claiming benefits they are entitled too...  If I were a cynic I'd say this was a deliberate ploy to prevent those with less know-how getting what they deserve.  I religiously read the Money Saving Expert website and get tons of great deals/claim back stuff I had no idea I could.  I'm currently in the process of claiming back my girlfriend's brother's bank charges - totaling over £20,000 over the last 6 years!  Despite the recent court ruling, it is supposedly still possible...

If he gets his money, that's the best kind of savings account there is.

True, but doubtless he'll blow it...  still better blown on something worthwhile than bloody bank charges!!