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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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What does Tax code 000002T(Wk1) mean and how

Customer Question

Hello,
What does Tax code 000002T(Wk1) mean and how can I check if it's right
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you tell me what sources of income you have and how much each one is before tax please. Which PAYE source is the 02T(Wk1) code being operated against?
Customer: replied 1 year ago.
Hi Tony,
02T is operated against my full-time monthly pay of 184 hrs @ £8.47 per hour. I have a second income from a pension of £2978.30 last tax code 297L.
Expert:  TonyTax replied 1 year ago.
Thanks. Do you receive a state pension? If so, how much is that and is it paid weekly, four weekly or monthly?
Customer: replied 1 year ago.
No state pension.
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer. It will take a while so please bear with me.
Customer: replied 1 year ago.
Ok will do.
Expert:  TonyTax replied 1 year ago.
Hi again. Code 02(Wk1) means that you have next to no personal allowance being operated against your earnings. The WK1 part means that each week's or month's pay (it should be Month 1 if you are paid monthly) is dealt with in isolation from what has gone before. The T means your tax needs to be reviewed at the end of the current tax year. The PAYE system normally works on a cumulative basis so its self-correcting if it works properly. You are entitled to a personal allowance of £10,600, £10,660 if you were born before 6 April 1938. Assuming you are entitled to £10,600, HMRC have allocated £2,978 to your £2,978 per annum pension so that you pay no tax on that. That's fine and is normal. Therefore, you would appear to have a balance of allowances of £7,622 to use against your earnings. That would be a code 762L. There could be any number of reasons why your tax code is 02(Wk1), tax underpaid from an earlier year, employment benefits such as private medical insurance and/or company car being a few. Assuming there are none of those, you should call the tax office on the number here and ask HMRC to review your employment tax code while you are on the phone and to amend it if necessary. If they say it is correct, ask them why and come back to me if you are confused by what they say. If they tell you something that is clearly incorrect, tell them so. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you Tony you have been very helpful, I will ring HMRC first thing in the morning and will get back to you if I need any more help.Kind regards,
Ian:
Expert:  TonyTax replied 1 year ago.
OK. Call at 8am if you can. It gets busy. Good luck.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Hi Tony,
I've just called HMRC and they have corrected my Tax code so I will be getting a refund in my next pay.Thank you for your help, I will recommend you to others.Kind regards,Ian:
Expert:  TonyTax replied 1 year ago.
That's great.
You should let your employer's payroll people to look out for a new coding.

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