They should say how they got to that number, so you should check that they've got all the right workings.
Essentially, it's a forecast of your tax return for this year, plus a way to true up the last one (ie bring last year's payments in line with the liability). So make sure their estimate of your taxable benefits bears some relation to what you're expecting, and so on.
Bear in mind that English law generally assumes that everyone is familiar with it. I can lend you the books if you like - four volumes, but you can probably skip some of the corporation tax bits :-)
Well there is a sort of explanation attached which seems to boil down to "standard allowances" which makes me wonder what my previous tax code was and what has changed.
(beyond the fact I earned 600 UKP of independent income last year, the tax on which I've asked them to collect via PAYE).
Oh, and the main reason they've issued a new one is because the personal allowance has changed mid-way through the year in order to paper over a load of cracks. That should be the only change from the last one you got (assuming you got one in March...)
Oh, and since Self-Assessment came in, you're responsible for saying how much you tax you owe. HMRC aren't responsible for calculating it, they just help you get your figures right ("Oops, you seem to have accidentally missed off your Swiss bank account...").
In effect they're just guessing about the code and need you to tell them how close they are to being right :-D
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(no subject)
Date: 2008-10-23 10:13 am (UTC)Oh, that's not helpful...? :-P
(no subject)
Date: 2008-10-23 10:19 am (UTC)Essentially, it's a forecast of your tax return for this year, plus a way to true up the last one (ie bring last year's payments in line with the liability). So make sure their estimate of your taxable benefits bears some relation to what you're expecting, and so on.
Bear in mind that English law generally assumes that everyone is familiar with it. I can lend you the books if you like - four volumes, but you can probably skip some of the corporation tax bits :-)
(no subject)
Date: 2008-10-23 10:23 am (UTC)(beyond the fact I earned 600 UKP of independent income last year, the tax on which I've asked them to collect via PAYE).
(no subject)
Date: 2008-10-23 10:21 am (UTC)(no subject)
Date: 2008-10-23 10:23 am (UTC)(no subject)
Date: 2008-10-24 11:47 am (UTC)In effect they're just guessing about the code and need you to tell them how close they are to being right :-D