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Sam
Sam, Accountant
Category: UK Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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My Tax code for 2011 has changed to D0 - ie I am getting no

Customer Question

My Tax code for 2011 has changed to D0 - ie I am getting no allowances. my circumstances have not changed. Why might this be & how can I check its correct?
Submitted: 3 years ago.
Category: UK Tax
Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your question

 

The usual reason for code D0 is when you have more than one source of income and when combined they give rise to 40% tax, so the code d) ensures that 40% tax is collected on the second source of income.

 

The higher rate threshold is at £42,475 for this tax year - so any income in excess of this amount would attract 40% tax.

 

If, however, this is your only income, and your income is less than this £42,475 threshold, then code D0 would be incorrect. Please advise further, so I can give you more specific advise

 

Thanks

 

Sam

Sam, Accountant
Category: UK Tax
Satisfied Customers: 12834
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Sam and other UK Tax Specialists are ready to help you
Customer: replied 3 years ago.
On my payslip my monthly taxable pay is £8358 & my tax is £3343 - which seems to be 40% on the whole amount. Is this correct & if not how do I query this with the Tax Office ?
Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your response

 

Code D0 does tax 40% on the whole amount - if this is not correct, as per my previous answer, then you should contact HMRC on 0845 300 0627

They are open from 8am to 8pm Monday to Friday and 8am to 4pm Saturday.

 

As they are very busy this time of year, phone as near to 8am or 8pm as possible with a more successful chance of getting answered.

 

Thanks


Sam

Customer: replied 3 years ago.
I will contact them

Before I do so,

I assume that I should recive an allowance - is there any resopn thet I would not ?

I have previously

Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your question

 

Only the reasons that I have already given you.

 

Even if your income was in excess of £100,000 I would still expect to see code OT which allows the 20% rate band (first £35,000 at 20%) but if this employment is your sole income and this one income is less than £100,000 (including company benefits) then I would expect to see an award of tax allowances of £7475

 

Thanks

 

Sam

Customer: replied 3 years ago.
Thnaka this incom is in excess of £100,000. I am also in receipt of two pensions (small amounts ) which I have declared to the Inland revenue.

Does this make a difference ?
Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your response

 

Yes it does, as you do have more than one income (in fact you have three) so your tax allowances will be reduced by £1 for every £2 of income you have in excess of £100,000

 

So depending on how much this combined income amounts to - and if in excess of £114,950 you are due no personal allowances at all.

 

However, I still would expect you to have at least code OT used against this employment income - which allows you to have the first £35,000 of income at 20%, so it would appear that this code D0 on your employment income is incorrect.

 

It would make sense that code D0 be applied against the two small pensions, but I would expect OT against the employment - unless your combined income is less than £114,950 then you are still due some personal allowances.

 

Thanks

 

Sam

 

Thanks

 

Sam

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