Tax codes

[Kathyan]

My husband's tax code on his March payslip was 325L but for April its 254L. Does this mean he will be paying more tax? He had a tax rebate last week because he had overpaid tax last year.

[kags]

This means he will be paying more tax in the current tax year than he did last tax year - at basic rate, it will work at at just over �150 a year extra. His tax code could be reduced for a number of reasons - the receipt of other untaxed income, benefits in kind (such as a company car) or the collecton of tax underpaid in earlier years. He should have been sent a coding notice, which will show how the code is made up. If he has misplaced it, he can ring his tax office and they will explain the code to him.

[stevie21]

All I know is that the first code means that any earnings over and above �3250 is liable for tax but this first �3250 is tax free.
In the 2nd code, that's reduced to �2540.

Anything more complicated than that is beyond me so at this very very basic level of understanding then he will pay more tax.

[Kathyan]

But if the personal allowand is �5000 (I'm not sure of the exact amount) surely his tax code should be 500 or thereabouts? We don't claim tax credits or let any property, so I would have thought that he should get the full allowance?

[Kathyan]

allowand? Sorry, allowance!