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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3817
Experience:  FCCA FCMA CGMA ACIS
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got new tax code which was 1000 L this was used last week on

Customer Question

got new tax code which was 1000 L this was used last week on wages but this week tax c code used was 123T could you please explain why this is.thankyou.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
The old tax code has now been superseded by the new one. However, it is possible that although you have received a P2 telling you of the new code the corresponding P6 to your employer has gone astray or not been generated at all, a not unusual occurrence in my experience. Of course, exactly the opposite may have taken place, a P6 issued, but no corresponding P2. However, all is not lost. Give your P2 to your employer and he may operate the new code, but only on a month 1 basis which means that the PAYE cumulative tax system which is designed to make you tax neutral at the year end will not operate perfectly, although you will see more in your monthly/weekly pay packet. Alternatively, your employer has received a P6 for 123T and, not unreasonably, is using it, but as it represents a reduction it should have been 123TM1 ie operated on a month 1 basis.
Your solution at this stage is to write to your tax office, their address and tax references will be on the P2, and ask them to firstly what they are doing, request an explanation, and get them to unscramble the mess. There should be a reason for a reduction in your tax free pay explained on your P2, it sounds like a recovery of unpaid or underpaid tax in earlier years, but it is clear from the tenor of your question that you have not received the relevant form.
All a bit of a mess I agree which you must take up with your tax office. Your employer is merely piggy in the middle. I do hope I have thrown some light on your possible situation.

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