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Tax code 1185L – tax changes for 2018/19

HMRC issues tax codes each year to reflect the personal tax-free allowance most people are entitled to. The new tax code for most people in 2018/19 is 1185L.

Tax Code 1185L

Tax codes consist of a 4-digit number and a letter. These reflect your Personal Allowance for the relevant tax year, divided by 10, and a letter giving your employer information about your personal tax circumstances. These are important details used for calculating the correct amount of tax to be paid.

The majority of people born after 5 April 1948 will have a 1185L tax code in 2018/19 , based on the £11,850 tax-free Personal Allowance. In this case, “L” means that you’re entitled to the normal tax-free amount. If your situation is different, your code will vary – we’ve outlined the different tax scenarios in our detailed 2018/19 tax codes guide.

Where is your tax code printed?

There are several places where you can find your code, including your payslips, your P45 and P60 forms, and on HMRC’s PAYE coding notice letters. If you’re registered for HMRC’s Self Assessment online service, then your tax code can also be found online.

You may have multiple tax codes, depending on the number of employers you have. If you have a second job, or a job and a pension, then you will have two tax codes.

Learn more about how a second job can impact your tax position here.

When does your tax code change?

Tax codes increase at the beginning of each tax year, i.e. 6 April, to reflect the new Personal Allowance. It may also be changed during the year if HMRC is notified about changes to your income or benefits situation. For example, if you start or stop receiving a state pension, benefits in kind, or rental income, and notify HMRC, you will receive a notice with a new tax code.

What if your code is wrong?

If you think your tax code is incorrect, you should contact HMRC. Usually, incorrect tax codes will result in you paying too much tax because your circumstances have changed and your records have not been updated. Simply contact HMRC on 0300 200 3300 and explain your changes so they can adjust your tax code and calculate the right amount of tax.

If you have any further questions on the new 2018/19 tax codes, take a look at our handy Knowledge Hub guide.

The post Tax code 1185L – tax changes for 2018/19 appeared first on inniAccounts.



This post first appeared on Pro-Active Online Contractor Accountants - I, please read the originial post: here

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Tax code 1185L – tax changes for 2018/19

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