tax code changed from 647L to OT ??


tax code changed from 647L to OT ??

Postby artemis4671 on Mon Feb 15, 2010 9:17 am

morning all -

my husband's tax code was changed from 647L to OT for the tax year 2010-11 - received letter from Inland Revenue recently
he is PAYE and has only one job
spoke to accountant and he says that as my husband earns £105k basic salary - the tax office is changing his tax code probably to account for the fact that he may earn more than £150k and hence not entitled for the personal allowance as announced in the recent budget??

is that correct?


thanks in advance.
artemis4671
 
Posts: 15
Joined: Sat Jan 23, 2010 4:35 pm

Re: tax code changed from 647L to OT ??

Postby AJHenderson on Mon Feb 15, 2010 10:22 am

If you earn over £100,000 the personal allowences reduces by £1 for every £2 your over the £100k
So if the income is over £112k then there is no personal allowance
AJHenderson
 
Posts: 100
Joined: Fri Nov 06, 2009 9:08 am

Re: tax code changed from 647L to OT ??

Postby artemis4671 on Mon Feb 15, 2010 1:00 pm

dear AJHenderson

Is that the new rules for 2010-11 ?

If his basic salary is £105k + £7k car allowance = £112k per annum - does that mean he gets no personal allowance at all and hence the Inland Rev is correct to change his tax code from 645L to OT ??

thanks in advance
artemis4671
 
Posts: 15
Joined: Sat Jan 23, 2010 4:35 pm

Re: tax code changed from 647L to OT ??

Postby AJHenderson on Mon Feb 15, 2010 1:28 pm

Yes the new rules would come in 2010/11.

As the basic salary and the car benefit is £112k then there is no personal allowance for the up coming tax year and the 0T code is correct
AJHenderson
 
Posts: 100
Joined: Fri Nov 06, 2009 9:08 am

Re: tax code changed from 647L to OT ??

Postby artemis4671 on Mon Feb 15, 2010 1:53 pm

thanks AJHenderson !
artemis4671
 
Posts: 15
Joined: Sat Jan 23, 2010 4:35 pm


Return to Income Tax

Dorifor Internet Marketing Dorifor Tax Group - our portfolio of tax sites:

UK's largest independent tax portal All the tax books on one site global tax seminars, conferences and other events Global tax jobs portal List of UK recruitment agencies and employers

cron