Digital Spy

Search Digital Spy
 

DS Forums

 
 

Inland Revenue Given a BR Tax Code...Why?


Reply
Thread Tools Search this Thread
Old 17-01-2010, 17:21
Mrs Mackintosh
Inactive Member
 
Join Date: Mar 2008
Posts: 1,743

My husband has been with the same employers for 30 years and his circumstances have not changed, i.e. he is not in receipt of any other additional pensions or benefits yet he has just been sent a BR coding for next year instead of the usual 647L.

Anyone on here got any idea why this would happen? He promises me he's going to phone them tomorrow and get it clarified but he's notorious for leaving things like this to the last minute. I suspect months of me going "Did you phone the Inland Revenue?" will ensue.

Thanks in advance.
Mrs Mackintosh is offline   Reply With Quote
Please sign in or register to remove this advertisement.
Old 17-01-2010, 17:22
stickler
Forum Member
 
Join Date: Jan 2009
Posts: 1,430
Is he due to draw a company pension this year?
stickler is offline   Reply With Quote
Old 17-01-2010, 17:26
Mrs Mackintosh
Inactive Member
 
Join Date: Mar 2008
Posts: 1,743
Not as far as I know. Yes, he's worked for them for 30 years but he's only 47.
Mrs Mackintosh is offline   Reply With Quote
Old 17-01-2010, 17:36
Cruachan
Forum Member
 
Join Date: Nov 2005
Location: West Midlands
Posts: 6,914
Are all of his tax returns etc up to date - if one ignores communications from HM Revenue & Customs (Inland Revenue has not existed since 2005) then one can have one's code reduced.
Cruachan is offline   Reply With Quote
Old 17-01-2010, 17:36
Georgemcneil
Inactive Member
 
Join Date: Nov 2007
Location: Scotland
Posts: 2,100
My husband has been with the same employers for 30 years and his circumstances have not changed, i.e. he is not in receipt of any other additional pensions or benefits yet he has just been sent a BR coding for next year instead of the usual 647L.

Anyone on here got any idea why this would happen? He promises me he's going to phone them tomorrow and get it clarified but he's notorious for leaving things like this to the last minute. I suspect months of me going "Did you phone the Inland Revenue?" will ensue.

Thanks in advance.
Usually for a second income, interest pension stocks some kind of benifit.
Georgemcneil is offline   Reply With Quote
Old 17-01-2010, 17:37
Mrs Mackintosh
Inactive Member
 
Join Date: Mar 2008
Posts: 1,743
He works for BAe Systems and I would have thought that as he's PAYE he wouldn't have to complete anything and he has no other income.
Mrs Mackintosh is offline   Reply With Quote
Old 17-01-2010, 17:41
mrs_buckley
Forum Member
 
Join Date: Nov 2008
Location: NE England
Posts: 2,490
I'm self employed and currently claiming JSA (my business is seasonal) and I also got a notice that my tax code is BR this year
mrs_buckley is offline   Reply With Quote
Old 17-01-2010, 17:44
OnexOne
Forum Member
 
Join Date: Dec 2004
Location: Ayrshire
Posts: 3,616
my other half is claiming jsa at the moment and too got a BR
OnexOne is offline   Reply With Quote
Old 17-01-2010, 17:46
OnexOne
Forum Member
 
Join Date: Dec 2004
Location: Ayrshire
Posts: 3,616
my other half is claiming jsa at the moment and too got a BR TAX CODE? What does it all mean? someone please help?
OnexOne is offline   Reply With Quote
Old 17-01-2010, 17:50
Georgemcneil
Inactive Member
 
Join Date: Nov 2007
Location: Scotland
Posts: 2,100
I'm self employed and currently claiming JSA (my business is seasonal) and I also got a notice that my tax code is BR this year
Could have stemmed from them counting a joint income .Best to ring them for an explanation although this will take several phone calls and several explanations.

Eventually you should get some sense from them, patience being the key word.
Georgemcneil is offline   Reply With Quote
Old 17-01-2010, 18:18
xyzzy
Forum Member
 
Join Date: Aug 2004
Posts: 203
From the internets:

BR

This code is an abbreviation of "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs, or a pension in addition to your job. For one of the jobs or the pension you have a suffix code so that you receive your "tax-free pay"; in the other you must pay tax at 20% on all of the earnings. If you have two pensions, the state pension and an occupational pension, this code may be used to deduct tax from your occupational pension.

Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

If you have this code, your employer is required to deduct tax at 20% from all of your earnings. You do not have any "tax-free pay".

Example: Your weekly earnings are 300. Your employer deducts 60 tax, i.e. 20% of 300.
xyzzy is offline   Reply With Quote
Old 17-01-2010, 19:02
mattwoodfield
Forum Member
 
Join Date: Jan 2004
Location: Birmingham
Posts: 5,829
I have been sent a BR tax code too. God knows why.. my code has always been 647L. Does this mean the tax man will be taking more of my wages this month?
mattwoodfield is offline   Reply With Quote
Old 17-01-2010, 19:52
woodbush
Forum Member
 
Join Date: Apr 2008
Location: Scottish Borders
Posts: 27,939
This is the explanation from HM Revenue
woodbush is offline   Reply With Quote
Old 17-01-2010, 22:40
gemma-the-husky
Forum Member
 
Join Date: Jul 2009
Location: UK
Posts: 12,734
BR generally means they think you have other income (or owe them form previous years)

doing it this way means you pay the most tax you are likely to have to, and that when it is sorted, you will get a refund, rather than owe them

(unless you earn over 30K or so, in which case you should be paying some tax at 40%)
gemma-the-husky is offline   Reply With Quote
Old 17-01-2010, 23:22
chris2k2
Forum Member
 
Join Date: Nov 2002
Posts: 9,345
BR generally means they think you have other income (or owe them form previous years)

doing it this way means you pay the most tax you are likely to have to, and that when it is sorted, you will get a refund, rather than owe them

(unless you earn over 30K or so, in which case you should be paying some tax at 40%)
But what happens in the cases of those who are on JSA (JobSeekers). Like others, I got a letter the other day as well telling me it is BR but I am on JSA as well. I did work last year however until March and not worked since and and currently still unemployed.

Don't see them giving people on JSA a rebate.
chris2k2 is offline   Reply With Quote
Old 18-01-2010, 16:02
Mrs Mackintosh
Inactive Member
 
Join Date: Mar 2008
Posts: 1,743
Just to update you folks. My husband rang the Inland Revenue today (hallelujah!) and they admitted it was an error on their part and changed his code back to 647L immediately. Quite a few people at his work had had the same letter notifying them of a BR tax code which were all in error as well.

He was on hold for about 20 minutes but the situation was dealt with right away once he spoke to a real person.

I strongly advise anyone who thinks their tax code is wrong to speak to the IR right away. If you leave it till they start taking the tax off you it can take months to rectify and in the meanwhile you'll lose quite a lot of money.
Mrs Mackintosh is offline   Reply With Quote
Old 18-01-2010, 16:12
The Deebster
Forum Member
 
Join Date: Mar 2007
Location: Nottingham
Posts: 659
my other half is claiming jsa at the moment and too got a BR
My OH is in the same boat. He got a letter last week giving him this code.

He rang them up and it turns out that despite him being made redundant end of December 2008 they still had him down as working for the company on one part of their system and on JSA on the other part. So, in effect, they were treating his JSA as a second income!

He was quite surprised that he'd not had a visit from a benefit fraud officer!

They said they'd send out a letter correcting it asap.
The Deebster is offline   Reply With Quote
Old 18-01-2010, 16:16
embod
Forum Member
 
Join Date: Jul 2008
Posts: 188
im the same,im told mine is because of my heath benifits with my employer. Could be that?
embod is offline   Reply With Quote
Old 18-01-2010, 16:22
tony13579
Forum Member
 
Join Date: Dec 2007
Location: south coast
Posts: 1,080
Maybe someone else is working but using his national insurance number?


"If you've got several sources of employment or pension income that are taxed through PAYE (Pay As You Earn) at the same time it can get confusing. So it's very important that you check your tax codes carefully to make sure you're paying the right tax.
When you might have more than one tax code
It's likely that you'll have more than one tax code if you have:

two or more jobs at the same time
income from two or more pensions
pension income and a job
"
tony13579 is offline   Reply With Quote
Old 18-01-2010, 16:23
lizzydripping25
Forum Member
 
Join Date: Dec 2007
Location: Home of the concrete cows!
Posts: 1,656
I have been sent a BR tax code too. God knows why.. my code has always been 647L. Does this mean the tax man will be taking more of my wages this month?
I would phone them and ask what is going on.
My daughter is at Uni and works in the Uni holidays for one or the other of two companies, depending which of them has hours available. She was given a tax code for one (647L) and a BR code for the other.
When she phoned them and explained that she only works in the Vacations they split her allowance between the two - so in effect she shouldn't have to pay any tax.

Obviously I dont know your circumstances but I would phone them any way
lizzydripping25 is offline   Reply With Quote
Old 25-01-2010, 19:38
JezPX
Forum Member
 
Join Date: Oct 2002
Location: South Wales, UK
Posts: 879
I stopped claiming Jobseekers Allowance in September 2009 after starting a new job in the same month. Over the weekend I received a letter from HM Revenue stating that my tax code would be changed to a BR code (my original tax was 647L since starting my new job). It seems that the HM still think I received JSA, but I don`t.

Judging by the comments in previous posts, it appears that this could be a massive cock-up. Has anyone got an update on this situation after contacting the HM?

It looks like I might have to phone them tomorrow to clarify the situation.
JezPX is offline   Reply With Quote
Old 25-01-2010, 19:47
MadameLaMinx
Forum Member
 
Join Date: Apr 2008
Location: Merseyside
Posts: 858
http://news.bbc.co.uk/1/hi/business/8478271.stm

I think this might be of use to people who are currently having this problem.
MadameLaMinx is offline   Reply With Quote
Old 25-01-2010, 19:47
woodbush
Forum Member
 
Join Date: Apr 2008
Location: Scottish Borders
Posts: 27,939
I stopped claiming Jobseekers Allowance in September 2009 after starting a new job in the same month. Over the weekend I received a letter from HM Revenue stating that my tax code would be changed to a BR code (my original tax was 647L since starting my new job). It seems that the HM still think I received JSA, but I don`t.

Judging by the comments in previous posts, it appears that this could be a massive cock-up. Has anyone got an update on this situation after contacting the HM?

It looks like I might have to phone them tomorrow to clarify the situation.
No surprise they are blaming it on a new computer system.

Incorrect tax codes may have been sent by HM Revenue & Customs (HMRC) because of a new computer system.
woodbush is offline   Reply With Quote
Old 25-01-2010, 19:52
add-ons
Forum Member
 
Join Date: Dec 2009
Posts: 151
My o/h was also sent a wildly incorrect tax code, and they assumed his salary had increased by 25% and changed his tax code accordingly

There have been many, many colleagues in the same situation.

I wonder how much money the Inland Revenue are making from what would appear to be thousands and thousands of people ringing a premium telephone number to correct the problem
add-ons is offline   Reply With Quote
Old 25-01-2010, 21:19
platelet
Forum Member
 
Join Date: May 2002
Location: GL51 0EX
Posts: 7,138
im the same,im told mine is because of my heath benifits with my employer. Could be that?
In short no. Your health benefits will effect your code because they're taxable - but it shouldn't mean you go to a BR code

unless your benefits cover you for having a couple of Thai girls walk naked up and down your spine every time you have back ache and you're using this on a daily basis, I can't see it using up your allowance .

more likely you're one of the many they've c***ed up.

call them.
platelet is offline   Reply With Quote
 
Reply



Thread Tools Search this Thread
Search this Thread:

Advanced Search

 
Forum Jump


All times are GMT +1. The time now is 18:37.