Change of tax code implications

[masteroats]

Hi,

My tax code has significantly changed - with my tax free allowance for 19/20 being reduced by £3000.

If my current liability is £600 (3000 X 40% x 6/12 months) would the full £600 be taken from my next salary payment and the remaining monthly payments be reduced by £100. Or will the whole £1200 be more evenly split?

Thanks

[robbob]

It Depends

(1) If you have a cumulative code the change will potentially all be actioned in one month - however even then there is the backup rule that tax deducted can be no more than 50% of taxable pay - if that rule kicks in the remainder due is knocked back to the next month or until the 50% limit isn't exceeded.

(2) You may be issued with or already have a w1/m1 code in which case they take a proportion of the extra tax due each month so the catch up would be spread over the rest of the tax year.

[masteroats]

Thanks very much for the response. It isnt anywhere near 50% and I dont have a special code so I will expect it to be taken in full from my next pay cycle.

Thanks