Sun, Jan 15, 2012
The new tax codes for 2012/2013 are being issued by HMRC.
The coding notices for these go out between now (January) and March for use against your pay from April 2012.
Please check your coding notice carefully to make sure you are not paying too much, or too little tax – this is especially more important if you have more than one job or income source, such as a pension income.
You can try this tax calculator to check your tax code too. Enter the tax code as part of your calculation when you see the result page and it will be able to see if the correct amount of income tax is being deducted.
With the basic personal allowance for next year increasing from £7,475 to £8,105 the normal coding for under 65s will change from 747L to 810L.
Due to the nature of the tapering of personal allowance, which are continuing into the new tax year, if you have income at or over £116,210 in 2012/13, you will have a zero personal allowance.
Remember that personal allowances tapering is adjusted by looking at gross income earned within the tax year, but you can subtract payments made toward pensions, charity and losses.
Try our UK Tax Calculators Wizard, it will allow you to enter all your income from differing sources and then calculate what your total tax liability will be. You can enter PAYE or personal pension contributions and see the effect on your taxation quite easily within it.