Tax Code

mknight · Postby **mknight** » Tue Jul 08, 2008 3:42 am

I am on tax code "K50"
The format looks unusual, what is the significance?

TAX SOLUTION · Postby **TAX SOLUTION** » Tue Jul 08, 2008 5:09 am

Hi,
K code is infact negative code means benefits you are geting are more then personal allowance.
so this K50 will add up in your monthly salary before applying PAYE tax.
e.g. suppose your monthly salary is Â£ 1000 then PAYE apply on Â£1000+50=1050..

Bye

mknight · Postby **mknight** » Tue Jul 08, 2008 6:16 am

I am actually paying more tax than a colleague on the same salary with tax code 543L.

Peter D · Postby **Peter D** » Tue Jul 08, 2008 7:01 am

K infers a previous underpayment of tax and HMRC are recovering it from your salary, so yes you will be paying more than a 543L on the same salary. Regards Peter

mknight · Postby **mknight** » Tue Jul 08, 2008 9:32 am

Thanks