What does the tax code 522L/1 mean?

I was on a basic rate tax code for 18 months. Does this mean I might have paid too much tax?

  • I really don't understand tax at all so I'd appreciate any help anyone can give. I paid basic rate tax for about 18 months - I didn't have a proper tax code. Because I don't understand tax I didn't even understand what BR meant until a friend told me! What I would like to know is - do you think I will be owed any tax or does it mean I could owe the taxman. I'd really like some help with this so thanks in advance of any answers anyone can give.

  • Answer:

    No, no, no. That is rubbish about forms P46 at this stage in the game. Forms P46 are only issued to employers for new employees. It sounds as though you are due a tax refund. My advice to you is to download form P91 from www.hmrc/uk/P91. Complete the form (which asks about your history of employment) from 06/04/2006, the start of the 2006/2007 tax year, and send to tax office, together with forms P60/ P45, and any other documentary evidence of tax deductions you have. Has to be original forms, photocopies and payslips not acceptable for repayment purposes. Tax office details should be on forms P60. Also write a letter asking for a correct code number to be issued. Ensure your National Insurance number is quoted everywhere.

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Code BR means you are taxed on all your earnings at the basic rate which is 22% (NOT 10% as some might think as tht is the 'Low' rate) You are entitled to receive £5225 of your total income tax free so if this is your only income then you will have paid too much and will get a refund. If it is a second job then you will have 2 employers and 2 codes and get this allowance from 1 of the employers so you won't have paid too much tax and you may have paid too little if the combined earnings tip you into the higher tax rate of 40%. You will then either get a bill or next year a reduction in your tax free allowance

DIXIE

As far as I know BR (basic rate) tax code means that your earnings are taxed at a flat 22% with no allowances. Do you have income from anywhere else which would be taking care of your tax allowances? If not, you need to contact your local tax office and complete a P46 form in order to get a proper tax code. If you are in fact on emergency tax code, you still need to sort out a proper code by visiting or ringing the tax office. If you have overpaid in tax, yes you will get a rebate, provided your employer has passed on the tax and done everything by the book. Try checking on the website www.hmrc.gov.uk for info on codes.

Lynda Lou

You need to fill in a form called P46 from your employer to declare that you only have one job. You have been overtaxed for the past 18 months, i guess since the start of your job. You can also make a phone call to the tax office in Banrsley to clarify this issue; 08453667802, have your NI number ready. Once the declaration has been made, you will get your rebate or refund back. BR is an emergency tax code and it is very costly! Good luck and make sure you get those money back.

Sexyboy

No basic rate IS NOT the lowest tax rate. Basic rate is actually around 30% of your earnings and they normally give you BR when you have a 2nd job or income. You're employer should really have sorted out your pay info when you got the job cus the tax people would have been able to work out which tax code you fall into and tax you accordingly. So far I have worked out that if in a tax code you'll get taxed between 20-25% inc nat ins. Hope that helps

if you are owed any tax you will get a letter from the taxman at the end of the financial year , which is april but basic rate is the lowest rate of tax , if you didn't have a proper tax code are you sure you weren't paying emergency rate ?? which is a lot higher all the best Ian

bibsian

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