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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15933
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Hi Does tax code DO for 2010-2011 really mean you are

Resolved Question:


Does tax code "DO" for 2010-2011 really mean you are taxed 40% on all your income, regardless of personal allowance £6745 and pension contributions? If so, why? We have received an HMRC notification with no explanation attached, and we can't find anywhere on their website which explains what specific codes mean. We can't query it because we don't really understand the change and no explanation is given.
Submitted: 7 years ago.
Category: UK Tax
Expert:  Tony Tax replied 7 years ago.
Can you tell me how much you earn and whether you have two jobs please.
Customer: replied 7 years ago.
One job - enquiring for my husband who works offshore, paid monthly, on annual x no of days contract - over contracted days he gets paid for over and above monthly wage. 2009 tax return showed pay of approx £106K.
Expert:  Tony Tax replied 7 years ago.
He will pay 40% tax on some of his income but not all of it.

There have been mistakes in tax codings recently issued by the Revenue and this has reached the television news and the newspapers. You should call the tax office get a 645L code issued before the new tax years starts on 6 April.
Customer: replied 7 years ago.
Yes I heard this on the radio this morning, that's why I tried looking it up.....I did see something on HMRC website that said, from what little I understood, that if you earn over £100K then for every £2 you earn over that, you will have £1 deducted from your personal allowance - what I couldn't understand was if this was cumulative, ie, you could end up paying back your allowance and some, and I wondered if this was how they could decide to levy this 40% tax code.

And incidentally, DOES "DO" mean all your income taxed at 40%?
Expert:  Tony Tax replied 7 years ago.
He may lose some or all of his personal allowance but that will depend on his earnings for 2010/11.

He will still be entitled to the 20% tax band so you should contact the tax office to have the code changed. He won't pay 40% tax on all his income.
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