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Tax Code K19 ??

ChrisGTL

Well-known Member
So, just received my 6th wage slip for my new job I started in Feb 2017.

I notice my tax code has changed to K19 and I've been stung with £998 for PAYE in the June wage.

Anyone have any ideas? My new job requires me to use my own personal car to travel. I submit all my mileage and I get expenses weekly to cover cost of fuel and car wear/tear.

I need to ring them on Monday but before I do does anyone here know the tax system to help me?
 

hippo99

Distinguished Member
Tax codes: Letters in your tax code: what they mean - GOV.UK
If your tax code has a ‘K’ at the beginning
Tax codes with ‘K’ at the beginning mean you have income that isn’t being taxed another way and it’s worth more than your tax-free allowance. For most people, this happens when you’re:

  • paying tax you owe from a previous year through your wages or pension
  • getting State benefits that you need to pay tax on (like the State Pension)
  • getting benefits from work that you must pay tax on (like a company car or health insurance)
Your employer or pension provider takes the tax due on the income that hasn’t been taxed from your wages or pension - even if another organisation is paying the untaxed income to you.

Employers and pension providers can’t take more than half your pre-tax wages or pension when using a K tax code.
 
From memory the K means personal allowance so I assume it may be to do with the car and the usage although you say it's your own car so could be a mistake. I used to get taxed for a company car.

Maybe the tax office don't realise this?
 

Greg Hook

Moderator & Reviewer
Sounds like a mistake to me. K tax codes are nasty!
 

ChrisGTL

Well-known Member
Sounds like a mistake to me. K tax codes are nasty!
Nasty is an accurate description. I know my workplace offers above the standard fuel rate which will be classed as a benefit in kind but surely not £500 extra in PAYE this month....

I take it the tax office gets the information from my employer regarding company cars etc. Don't understand where the misinformation came from as our place doesn't offer a company car scheme. We all use our own cars.
 

adam-burnley

Distinguished Member
When you say you get expenses to cover fuel and wear and tear, what exactly do you mean?

I use my own car for business travel, and claim back 45p per mile, which I think is the recommended HRMC rate. I'm on a regular tax code.

Do you have any other BIKs, such as private health?

What was your code before?
 

ChrisGTL

Well-known Member
When you say you get expenses to cover fuel and wear and tear, what exactly do you mean?

I use my own car for business travel, and claim back 45p per mile, which I think is the recommended HRMC rate. I'm on a regular tax code.

Do you have any other BIKs, such as private health?

What was your code before?

I can't remember the exact figures but my employer offers me 10p above the HMRC figure for the first 10k miles (in the tax year). This drops to the normal 45p per mile after 10k.

I have just gone past my probation period (3 weeks ago) so I am now in the private health scheme provided by AXA.

I am also in the pension scheme but that scheme is just a normal contribution matching type.

No other BIK that I am aware of.

I also fly out to America and Germany for training which I pay for and claim back. That is all really.
 
The private health scheme could be another reason for the tax code, also the payment this month may be extra as it includes previous months.

How long have you been working there and how long have you been getting the benefits before your tax code changed.

It would definitely be worth calling the tax office on Monday just to get a bit of clarification.
 

adam-burnley

Distinguished Member
I can't remember the exact figures but my employer offers me 10p above the HMRC figure for the first 10k miles (in the tax year). This drops to the normal 45p per mile after 10k.

I have just gone past my probation period (3 weeks ago) so I am now in the private health scheme provided by AXA.

The standard rate is 45p up to 10,000 miles, then 25p after, so you will be paying BIK tax on the extra amount ypu are receiving.

Private health is quite high too.

The K code just means your tax allowance has been eaten away and is a negative value, i.e. you owe the tax man before you even start earning money!

As others have said, call them and ask for clarification. Or you can register on the HRMC web site and access your PAYE and tax info online.
 

ChrisGTL

Well-known Member
The private health scheme could be another reason for the tax code, also the payment this month may be extra as it includes previous months.

How long have you been working there and how long have you been getting the benefits before your tax code changed.

It would definitely be worth calling the tax office on Monday just to get a bit of clarification.

I've worked there since 21st Feb 2017.

My probation period ended about 3 weeks ago. At this point I was entered into the private health scheme.

My tax code changed on this months salary.

I was expecting a bill to pay come April 2018 on the BIK's but wasn't expecting a £500 bill 6 months into my employment.

Oh well. Yes I will ring them Monday and listen to their hold music for a couple hours.
 

Monty Nine

Well-known Member
Do a web chat with them. Much easier.

But you should have got the same tax coding notice letter that your payroll dept apparently got from HMRC.
 

rousetafarian

Moderator
Get yourself a UTC identifier (unique tax code) which grants you access to HMRC online.

The site is excellent, not only for information but online SA too.
 
I think you have to register and get a government gateway id first, at least that's what I did first when I became self employed.

I then received a UTR (unique tax reference) so that I can access everything online, brilliant service as it saves me having to spend hours on the phone.

It'll take a few days for it come in the post so may be worth trying online chat or a phone call if you want to find out quickly.
 

rousetafarian

Moderator
I think you have to register and get a government gateway id first, at least that's what I did first when I became self employed.

I then received a UTR (unique tax reference) so that I can access everything online, brilliant service as it saves me having to spend hours on the phone.

It'll take a few days for it come in the post so may be worth trying online chat or a phone call if you want to find out quickly.
Sorry I meant UTR, and yes the process is as you've stated
 

ChrisGTL

Well-known Member
Spoke to HMRC today and the K tax code is the result of a 'miscalculation automatically done by a computer'.

They had me down as earning 100k. If only!!

Apparently I will get a tax refund of about £600 in July.
 

rampant

Well-known Member
got a K code this year, as the tax man has concluded that i owe tax from 2010! :( - painful loosing £480 per month out of my salary :( - thank god labour didnt get in!!!
 
got a K code this year, as the tax man has concluded that i owe tax from 2010! :( - painful loosing £480 per month out of my salary :( - thank god labour didnt get in!!!
If you're losing £480 a month what difference would it make had Labour got in??

I was paying £350 a week tax last year and it wouldn't have affected me??

From what I can tell it would be the big earners that would have been affected.
 

Monty Nine

Well-known Member
If you're losing £480 a month what difference would it make had Labour got in??

I was paying £350 a week tax last year and it wouldn't have affected me??

From what I can tell it would be the big earners that would have been affected.

£74000 pa is not a big earner? [emoji23]
 
£74000 pa is not a big earner? [emoji23]
Labour stated in their manifesto that people earning over £80,000 would be taxed higher, someone being taxed £480 a month wouldn't be affected as that would be someone who earns around £40,000??


74k is a good wage but I meant in terms of Labour's taxing of the rich it wouldn't affect either person based on their incomes :).
 

rampant

Well-known Member
Labour stated in their manifesto that people earning over £80,000 would be taxed higher, someone being taxed £480 a month wouldn't be affected as that would be someone who earns around £40,000??

74k is a good wage but I meant in terms of Labour's taxing of the rich it wouldn't affect either person based on their incomes :).

my base is higher than that- then add on the extra bonuses i earn because i work my arse off ... and then the extra 5% NOW that Labour would have needed to raised - then when they realised that oh-fudge we need more money - lets tax more ..
 

rousetafarian

Moderator
my base is higher than that- then add on the extra bonuses i earn because i work my arse off ... and then the extra 5% NOW that Labour would have needed to raised - then when they realised that oh-fudge we need more money - lets tax more ..
This and the most recent posts are ever so slightly off topic, unless you are on a K code
 

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