Find solution
What does the tax code 522L/1 mean?

What does this tax code mean?

  • I am a full-time student, recently started working part-time. I am being taxed A LOT, even though I'm only earning £260 a month, maximum. I have been told that I can claim back my tax online and get my tax code sorted. My tax code is 0T. I looked on HMRC website and under my tax code, it says this: Tax code '0T' means your allowances have been used up or reduced to nil and your income is taxed at the relevant tax rates. I don't understand what this means... can someone translate for me?

  • Answer:

    0T - no allowances - you are being taxed a flat 20%. When you started the job you should have filled in and returned a P46, either your employer didn't give you the form or you lost it. The system now regards your employment as secondary - nothing your employer can do now. Get the HMRC phone number from direct.gov.uk. Call them and have a payslip and your National Insurance Number to hand when you call. They can issue a new code in a couple of minutes.

Petruscl... at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

For terminations after 5 April 2011, companies will be obliged to make post-termination payments using the 0T tax code, meaning that the existing cash flow benefit will be removed. The 0T tax code will be applied through PAYE on a "non-cumulative" basis: if an employee is paid on a monthly basis, and the termination payment exceeds 1/12th of the basic band rate, the excess will be taxed at 40%; and likewise, if the termination payment exceeds 1/12th of the available 40% band, the excess will be taxed at the higher rate of 50%.

mark m

0T tax code is applied if there is no P45 or P46 being handed over to the new employer it deducts 20% tax upto £35,000 on gross earnings, 40% deduction between £35,001 to £150,000 and 50% anything over £150,000

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.