Righto, a question referring to tax codes in the UK.
Currently my tax code is 057L due to having a company car and medical benefits. When i lose these, i guess it will go back up to the standard 477L (if that is what it is?).
If i was to be on £20000 a year, how much better off will i be each month by the change of tax code?
Sorry KefKef I have no clue. :shrug:
Speaking of taxes, Tomorrow begins the officall hell week in the USA. Tax returns are due to be filed by April 15th. :eek:
I am not looking forward to my weekend. 
Your tax code is the amount of money you can earn before you start paying tax.
Therefor at the moment, as your tax code is 057L, then you can earn £570 tax free then start paying tax.
If your tax code chages to the new one, then you can earn £4770 before you start paying tax. (the last L counts as a zero)
I haven’t worked in payroll for ages so I may be incorrect but thats how I remember it.
Yeah, i figured out about the tax free codes etc, i was just wondering if anyone could tell me how much ‘better off’ i would be. ie if i curently paid £300 a month tax on the 057L code, then i would only pay £250 a month on the 477L code, if you get my meaning?
pink and fluffy is right 
new code is 484L. = £4840 before tax is due
£4840 - £570 = £4270 /12 months = £356
£356 x 22% tax = £78.32 per month better off.
I am not looking forward to my weekend
just done tax returns for 250 people across 28 small companies - fun.
much better than the days of doing it for 100,000 people though - I LOVE THIS JOB! hehe
The problem here is that it is not straight forward on the tax calculation. You need to take all of your income sources and then look for ways to tax deductions to reduce that amount. If when you are all done deducting you haven’t made the “standard” deduction then you get to claim that. Additioally if you sold stock there is another set of forms to fill out and if you had any small business income (contractor) there is a set of forms for that so you can deduct your business expenses. Oh yeah let’s not forget the set of forms if you had interest or dividend income. The tax system here is a nightmare.:rolleyes: All in all I figure it will take well over 8 or 10 hours of my time to run all the numbers into a tax preparation software and do all the “what ifs”. :mad:
The does ‘L’ does not represent zero 
that’s an indicator that is ‘Basic Personal Allowance’.
See if this helps ya… http://www.inlandrevenue.gov.uk/leaflets/p3.htm
depending on whether you are working the tax manually or on a computerised system, its not even a 0 on the end anyway. Officially the new tax code is 4845, but since its shortened to only the first 3 digits, the code 484 can represent an allowance from £4840 to £4849.
and if anyone is interested the new national insurance levels give you 33p a week extra.
thanks Mr Brown!
Ther government’ll shaft you either way, imagine me wondering what the French were complaing about with 19% capital gains over here!!!
However it does cost you 8% to buy a house.
swings and roundabouts.