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Sam
Sam, Accountant
Category: Tax
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I'm a salaried employee. I received a 3% pay increase in April, which impacted my

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hi, I'm a salaried employee. I received a 3% pay increase in April, which impacted my tax code and made me cross some sort of threshold I guess. As a result, my paycheck at the end of the month is about £50 lighter than it was in January. My company's HR department explained to me I went from a "1000 L" tax code to "536T". And now I received another letter from HMRC revising it to 321T. I was told by a friend to increase pension contributions to reduce earnings and get back below the threshold I just crossed as a result of this pay increase. I have no idea to calculate how much I'd need to shift to my pension contribution to do that (and get back to about the same net salary if was netting only a few months ago).
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

You mention your tax codes. Can you tell me what is in the 536T and 321T tax codes in terms of allowances and deductions please. How much is your annual salary?

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