Why m1 tax code

As you have confirmed that you are receiving income from elsewhere, the assumption is that you are already receiving your tax free personal allowance against that other source of income. This code should be correct if you are a basic rate taxpayer and all of your personal allowance for the year is being fully used against earnings from another employment or pension.

If you have not got enough income from this other job or pension to cover all your tax free pay, then you should contact HMRC on the Income Tax Helpline as this is quite a complex issue, it is probably better to phone HMRC rather than contact them via the on-line form; you will need to give HMRC an estimate of your expected income from each job or pension, and update this if your circumstances change.

It takes account of the basic rate, higher rate and additional rate tax bands. So the rate of tax increases as earnings increase. This will only affect people whose earnings in a pay period exceed the basic rate tax band. For your only or main job, an 0T code will not produce the right result, as it does not give you any tax free pay.

How do I get the right tax code? Am I due a tax rebate because I have had an emergency tax code? Do you buy your own tools for work? Do you need to check your tax code? Call us on 8. This is why on occasions an employee might be refunded some tax in the current financial year if their salary reduces significantly from previous months.

There could be a number of reasons for this treatment, one being that they have underpaid tax earlier in the financial year and HMRC have increased their tax code to compensate for this. If your enquiry is more urgent, please do give me a call. Enter your search terms search. Accept additional cookies Reject additional cookies View cookies.

Hide this message. Home Employing people Payroll. Understanding your employees' tax codes. Print entire guide.

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