tax codes

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ed
retired
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Joined: Thu Jun 21, 2007 4:01 pm
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#1 tax codes

Post by ed »

here's one off the wall..

When I gave up the IT shenanigins to concentrate on loudspeakers I closed the PAYE scheme I had been running for 20 odd years...ok so move on a few years and I'm running the company down and what do I do with the capital assets....the accountant says you must pay yourself the remaining few quid as salary via PAYE.....ok seems like a good idea, a couple of years paying myself a pittance under the tax radar until the money is gone.

So I set up a new PAYE scheme, which this time has to be electronic with the IR PAYE tools program talking to the mother ship.....
so far so good...I started last October....at least 2 solid days to get set up and 2 months to get all the necessary activation codes(don't ask)...to do the transactions.....and then in January I(the company) get a tax coding notice for the employee(yours truly) which says 300T month one basis. Since October I have earned £3000 and I've had to pay £150 tax.

Ironically, with the previous paper based IR PAYE scheme I would spend about 15 mins a month with the tax tables and send a cheque off to the revenue. Now I spend about an hour a month fighting with the software while it bounces all my transactions...go figure.

Here's the question...if all the UK normal people have a tax code of 1250, then how come I have to live with 300...and it seems I can't even earn £3000 without paying tax......I'm feeling a tad victimised here.

Anybody with any insight to the injustice here please share.
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pre65
Amstrad Tower of Power
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#2 Re: tax codes

Post by pre65 »

My last tax code was 491L for my main private pension, and BR (basic rate) for my tiny private pension.

The state pension is taxable but they use that as my allowance.

£12500 (allowance) - £7585 (state pension) = £4915 (491L tax code)

2019-2020 figures.
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