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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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What does Tax code 000002T(Wk1) mean and how

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What does Tax code 000002T(Wk1) mean and how can I check if it's right
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 2 years 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.
Thanks. Do you receive a state pension? If so, how much is that and is it paid weekly, four weekly or monthly?
Customer: replied 2 years ago.
No state pension.
Thanks. Leave this with me while I draft my answer. It will take a while so please bear with me.
Customer: replied 2 years ago.
Ok will do.
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 2 years 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,
OK. Call at 8am if you can. It gets busy. Good luck.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years 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:
That's great.
You should let your employer's payroll people to look out for a new coding.