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Tax code querie

deborahcarpenterdeborahcarpenter Well-KnownRegistered Posts: 161
Good Morning All,

I am working on a tax return for a new client (employed and self employed) He has given me a P60 with a tax code of 1206L, I have never seen this before, has anyone else come across it?

Many thanks
Deborah

Comments

  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    It may be relating to employment expenses, previous years tax refund, etc etc
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    This is quite usual if someone has employment and self-employment income. The tax code is reduced because of the other income. Hope that makes sense.
  • deborahcarpenterdeborahcarpenter Well-Known Registered Posts: 161
    The tax code isnt reduced though its giving him an allowance of £12060 isnt it if we put a zero on the end of the tax code as we do with the standard tax code?
    Or am I missing the point here? i could under stand if it was 126L but its 1206L?
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    Yes the personal allowance has been increased so is likely to be relating to overpaid tax ie. employment related expenses not met by employer or a tax refund due
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    You need to find out what the reason for the code was as it will probably have an impact on the tax return. If you client has a copy of the coding notice you can get this information from that, or else you can phone HMRC and ask them for details.
  • deborahcarpenterdeborahcarpenter Well-Known Registered Posts: 161
    The tax code change is related to fuel allowance. Apparently my client was paying for his own fuel and claiming it back from his employer so HMRC changed his tax code to allow for this,.
    However, now i have done his self assessment the tax code automatically reverts back to 844L and so means he has to pay back his increased allowance of £1550 for fuel he has paid for.
    I have never come across this before, any help much appreciated. It is not shown on his P60 as a benefit in kind just a salary with the increased tax allowance.
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