Tax code.

[AniaSM]

I started a new job about a year ago and my tax code is 543L. Does this seem about right? How does it work?

[Tichfield]

543L equates to a personal allowance of �5,435. This is the amount of income you don't have to pay tax on.

�5435 is the basic personal allowance for the current tax year. It is correct so long as you are not able to claim any extra allowances.

[Tichfield]

This page might be useful:

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/BeginnersGuideToTax/DG_4015583

[kempie]

Also, because of measures prompted by the 10p tax rate fiasco, the basic personal tax allowance will increase to �6,035 (tax code 603L) around September.

[wakeover]

So will we all get a tax refund?

[Beiderbeck]

One has to be extremely switched on to follow the proposed changes and timetable. For now 543L is the under 65 yrs income level of 5430GBP, above which tax is deducted at 20% from April to September 08. About then [the date is not yet announced] the refund of 60GBP kicks in, with further 10GBP payments monthly to a total of 120GBP [the compensation....ha...ha... for losing 232GBP on abolition of the 10% band] HMRC will not say when the other change will take place....the uplift of tax code 543L to 603L., but likely to be 30.9.08. What is utterly obscure is whether it is another con trick, where the 120GBP compensation is wrapped into the tax code uplift. Anyway be sure for 6 months one has to pay the 20% tax before any chance of clawback or uplift in coding.