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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5142
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Request clarification of paragraph "Will I pay less or more

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Request clarification of paragraph "Will I pay less or more tax?" in leaflet. I am ***** ***** Tax ref. 948/502 N.I.No. KR151028A. New code is 167Y - lower than previous code - but followed by Y, and not preceded by K. Underpayment restriction -£6 seems too small to affect the figures. Grateful if you would clarify - pay less or more ?
Hello and welcome to the site. Thank you for your question.

In general terms, tax codes with ‘K’ at the beginning mean you have income that isn’t being taxed another way and it’s worth more than your tax-free allowance.

A tax code with letter Y means you were born before 6 April 1938 or over and entitled to your bigger full tax-free.

A tax code of 167Y means you can earn a further £1,670 a year over and above your pension income before you would pay any tax.

More information on what tax codes mean can be found here

I hope this is helpful and answers your question.

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