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Where Taxpayers and Advisers Meet

K tax code

Suzi
Posts:3
Joined:Fri Feb 17, 2017 11:17 am
K tax code

Postby Suzi » Fri Feb 17, 2017 11:22 am

Hi, I got a letter, where HMRC changed my tax code from 1100 L to K 119.

Perssonal allowance is 0
total is 0
less underpayment restriction is 1205 ( 1205 to be added to your wages, salary or pension)
(i was previously told that I owe 542 pounds tax from an earlier tax year.. )

tax code K 119
totals tax free amount is -1205

Does it mean I will have to pay missing tax ?? I do not understand. or what means this minus amount ?
Thanks

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: K tax code

Postby AmanSood » Fri Feb 17, 2017 11:47 am

The K tax code basically means you will be treated as having a notional amount of income to recover the underpaid tax from the previous year. I would assume you are a 45% tax payer and therefore the tax underpaid is (45% x £1205 = £542). This amount will be clawed back from you via the payroll in equal instalments each month 1/12. So no action is required from you and your employer will recover this additional tax from you on behalf of HMRC via the payroll when applying the K code.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: K tax code

Postby SteLacca » Fri Feb 17, 2017 11:57 am

The NIL tax-free allowance is more of a concern. Do you by any chance earn more than £122,000 per annum?

Suzi
Posts:3
Joined:Fri Feb 17, 2017 11:17 am

Re: K tax code

Postby Suzi » Fri Feb 17, 2017 12:30 pm

The NIL tax-free allowance is more of a concern. Do you by any chance earn more than £122,000 per annum?

I am just a waitress ,with a different salary every two weeks .. sometimes I have 400 pounds salary sometimes 500 , once or twice 800 - 900 .. and on my payslips they always deducted at least 20 % of the pay .. last month I did not even work, my salary was 0 ,but I got back tax around 84 pounds.. I do not understand

Suzi
Posts:3
Joined:Fri Feb 17, 2017 11:17 am

Re: K tax code

Postby Suzi » Fri Feb 17, 2017 12:38 pm

The K tax code basically means you will be treated as having a notional amount of income to recover the underpaid tax from the previous year. I would assume you are a 45% tax payer and therefore the tax underpaid is (45% x £1205 = £542). This amount will be clawed back from you via the payroll in equal instalments each month 1/12. So no action is required from you and your employer will recover this additional tax from you on behalf of HMRC via the payroll when applying the K code.
Hi
how can I be 45% tax payer, if I work as a waitress, and when I count my salaries since april 2016 till now its around 14 200 pounds together ..
thanks anyway

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: K tax code

Postby AmanSood » Fri Feb 17, 2017 1:49 pm

you should contact HMRC and get your tax code amended as this would be incorrect especially since you only earn £14k per year and in total you should only pay tax of £600 for the tax year.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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