what should my tax code be

[puddicat]

i think i am getting hammered in tax, my friend and i do the same hours, my tax code is 503L, hers is 488L, is age anything to do with it, she is in her fourties,and i am in my fifties, why is it different, we are both single.

[Ethel]

Everyone under the age of 65 has a basic tax allowance of �5225 this year.

There could be any number of reasons why hers is different - but your code means you pay LESS tax than her.

[jedimistress]

As Ethel said, your code means you pay less tax. 503L means can earn �5035 tax free per year. Your friend can earn �4885 tax free. The reasons she may have a different tax code are her own. If she feels she has the wrong code, she should check her notices of coding to see why. Your's is the standard one which the majority of people on standard PAYE have.

[jedimistress]

Your new code as of April 6th 2007 should be 522L. Meaning you can earn �5225 tax free.