PAYE/tax help

[CorsaEdi]

Just wondered if anyone knows anything about PAYE and tax codes etc

Basically am on tax code 800l and I seem to have been paying more tax than I should, I got a letter other day saying my tax Code will be raised to 1010l

I did a quick check online via hmrc and it said I am due a return but I was thinking would they be giving me a higher tax code to save giving me a refund and just giving me more per week?

Should I ring the asap or wait until april?

Thanks

[Hardcore]

That higher tax code means you will be taxed less than you are just now btw.
You will get a tax rebate in the post at some point. Took me 2 years i think for it.

[Hardcore]

if it ends in L it means you are being taxed the regular amount.
The number in front of it is how much you can earn a year before tax (times it by 10)

So
800l
800 x 10 = 8000 so anything you earn over 8000 a year is taxed and anything less than that isn't

[CorsaEdi]

Cheers mate I understand the number part (800l 1010l) so does that mean that in April I will pay no tax? As its beginning if tax year? Sorry to sound daft but I know **** all about this stuff

[CorsaEdi]

Also, when I got the refund check it was for my earnings as if last week and it said I was due 624 then I did it for this week and it was 580 so I did it for April and it was 508 so I'm confused lol

[Hardcore]

[Taurus]

Cheers mate I understand the number part (800l 1010l) so does that mean that in April I will pay no tax? As its beginning if tax year? Sorry to sound daft but I know **** all about this stuff

It depends what you get paid. A tax code of 1010 means that you won't be taxed on the first 10100 of your earnings. So if you were earning 15,000 you'll only be taxed on 4,900 of it. If you earn 10,000 you won't pay any tax.

[CorsaEdi]

Well it's a bit confusing then as I get paid weekly and some times do over time each week, so some weeks I earn an extra 50quid some times maybe half that so how would that work?

[Danny]

[Hardcore]

Well it's a bit confusing then as I get paid weekly and some times do over time each week, so some weeks I earn an extra 50quid some times maybe half that so how would that work?

They pro rata the tax on it. So if it looks like you earn much more because of one big payslip you get taxed a little more because they then work out a new yearly wage prediction based on that.
But when you next get a lower wage, they take that into account then reduce the amount taxed again the following month, or else send a rebate at the end of the tax year

[CorsaEdi]

Ah right kind of makes sense lol going to try ring them tomorrow, cheers guys