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NI # & Tax code #, what's the difference?

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NI # & Tax code #, what's the difference?

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Old Jul 20th 2007 | 3:35 pm
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Default NI # & Tax code #, what's the difference?

When I was in the UK years ago a NI# was all I remember having, but I've seen things about a Tax Code # as well. I don't remember that at all? Does an employer supply that?

Just want to get things straight for our return next year.
 
Old Jul 20th 2007 | 3:46 pm
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Default Re: NI # & Tax code #, what's the difference?

I called up the Revenue to get my tax code. It is a different number to your NI.
 
Old Jul 20th 2007 | 3:53 pm
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Default Re: NI # & Tax code #, what's the difference?

Originally Posted by Triboy
When I was in the UK years ago a NI# was all I remember having, but I've seen things about a Tax Code # as well. I don't remember that at all? Does an employer supply that?

Just want to get things straight for our return next year.
Hi

A Ni mean National Insurance Number, you normally get one of these allocated at 16years of age and the number allocated stays with you for life, just like a SSN in the usa


The tax code, is a number giving according to your circumstances


When you get a job in the UK you are supposed to hand in a P45 form to new employer, The company you left from previously should give you one.

The P 45 tells the new employer, your gross salary to date, tax paid to date, and tax code number

If you are moving back to the UK you may well no longer have a P45, as you may have sent this to the Inland Revenue before emigrating abroad

In the absence of a P 45 , you new employer will give you a form P46 to complete and put you on Emergency tax code, This number is changed most budget days.

The higher the tax code number the lower tax you will pay. If you are married you get a higher tax code than if your single etc


I used to be a payroll clerk in UK.

A P 60 tax form is given to all employees at the end of each tax year, You should keep this safe as it is not always possible to get a replacement P 60
 
Old Jul 20th 2007 | 3:55 pm
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Default Re: NI # & Tax code #, what's the difference?

intresting,i never new about a tax code so what is it and do u still need to use your NI aswell

shaz
 
Old Jul 20th 2007 | 3:56 pm
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Default Re: NI # & Tax code #, what's the difference?

Here is an example of a NI number, so format will look something like

Made up number

GH 45 29 76 C


The last letter will end in either A B C or D
 
Old Jul 20th 2007 | 3:58 pm
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Default Re: NI # & Tax code #, what's the difference?

Originally Posted by scatty
Hi

A Ni mean National Insurance Number, you normally get one of these allocated at 16years of age and the number allocated stays with you for life, just like a SSN in the usa


The tax code, is a number giving according to your circumstances


When you get a job in the UK you are supposed to hand in a P45 form to new employer, The company you left from previously should give you one.

The P 45 tells the new employer, your gross salary to date, tax paid to date, and tax code number

If you are moving back to the UK you may well no longer have a P45, as you may have sent this to the Inland Revenue before emigrating abroad

In the absence of a P 45 , you new employer will give you a form P46 to complete and put you on Emergency tax code, This number is changed most budget days.

The higher the tax code number the lower tax you will pay. If you are married you get a higher tax code than if your single etc


I used to be a payroll clerk in UK.

A P 60 tax form is given to all employees at the end of each tax year, You should keep this safe as it is not always possible to get a replacement P 60
oops sorry thanks for the info i now understand..cheers

shaz xx
 
Old Jul 20th 2007 | 4:01 pm
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Default Re: NI # & Tax code #, what's the difference?

The last time I worked a salary out in the UK the emergency code was 483L


This is a rough guide

add a #0 # onto the code number = 4830

The number 4830 means the total amount you are allowed to earn a year free of tax

So if you earn 4,830.00 Pounds sterling pa then no tax to pay

Here is expamle

You earn 14,380 pounds per year, then deduct 4,380 leaves taxible pay of 10,000 pounds

From memory the lowest tax band is 10% so this meands you would pay a total of 1,000.00 tax in the year

The next tax bracket was 22% and highest tax bracket 40%, but rates could well have changed since I moved to the usa
 
Old Jul 20th 2007 | 4:05 pm
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Default Re: NI # & Tax code #, what's the difference?

Do not forget that on top of tax you have to pay national insurance contributions


The last rate I remember was 7% of your gross salary is what the employee pays.

Then the employer also pays national insurance off 11% of your gross salary


Again these rates could well have changed now, but just giving an example
 
Old Jul 20th 2007 | 4:26 pm
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Default Re: NI # & Tax code #, what's the difference?

Originally Posted by Triboy
When I was in the UK years ago a NI# was all I remember having, but I've seen things about a Tax Code # as well. I don't remember that at all? Does an employer supply that?

Just want to get things straight for our return next year.
'Sfunny. I was thinking about this just the other day and hunting around on line to see if I could find some way to find out what my NI# is. No luck, so I ended up calling the number for information on the Department for Work and Pensions page and a very nice chap gave me an address to write to (it's at work so I can't give it to you, but can do so on Monday if you want).

He told me I should give details of previous addresses, places/dates I worked in the UK, and names I would have used (for me, maiden name and married name).

I haven't done it yet, so can't tell you how I got on.

Sarah in TX
 
Old Jul 20th 2007 | 7:43 pm
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Default Re: NI # & Tax code #, what's the difference?

Thanks all, very helpful
 
Old Jul 20th 2007 | 8:22 pm
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Default Re: NI # & Tax code #, what's the difference?

Darn it. Things could be complicated for me. I know my NI number, but not tax code.

I didnt work for the last 3yrs in UK. For 2yrs i was on income support as a single mum. Then i met and married my husband, came off support as he worked, but i remained a stay at home mum.
How will this affect me getting a job back in blighty? I sure as hell have no P45!
 
Old Jul 21st 2007 | 10:05 pm
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Default Re: NI # & Tax code #, what's the difference?

Originally Posted by Fleaflyfloflum
Darn it. Things could be complicated for me. I know my NI number, but not tax code.

I didnt work for the last 3yrs in UK. For 2yrs i was on income support as a single mum. Then i met and married my husband, came off support as he worked, but i remained a stay at home mum.
How will this affect me getting a job back in blighty? I sure as hell have no P45!
Don't worry Flea it's not in the least complicated. As Scatty said, if you have no P45 to hand in to your new employer, they will give you a P46 form to complete - you just fill in the details with your particular circumstances - its only a short form, nothing big at all. The new employer will send it off to the tax office, who will then issue your tax code. In the meantime, you can still be paid, but your employer will put you on an emergency tax code. Any tax overpaid will be refunded to you immediately once your proper tax code comes through (usually a matter of weeks).

I didn't have a P45 when we returned in Feb this year either but it didn't affect anything at all, so don't give it another thought.

As long as you know your NI number that's the main thing.
 
Old Jul 22nd 2007 | 7:21 pm
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Default Re: NI # & Tax code #, what's the difference?

The single person's tax allowance for 2007/8 is £5,225 so a tax code based on this would be 522L. Everyone will start with this tax code and it means that you can earn £5,225 in a tax year without having to pay any tax.

The tax code may then be varied depending on your circumstances. There are no additional tax allowances for being married any more but you get additional allowances if you are over 65 or registered blind.

The tax code will be changed if you have employee related benefits (such as a company car or private health insurance), It will also be changed if you pay into a private pension scheme and you are a 40% tax payer.

For 2007/8 the tax rates are as follows:

10% for earnings between £0 and £2,230
22% for earnings between £2,230 and £34,600
40% for earnings above £34,600

Don't forget that the above figures apply after your tax allowance so if you earn, say £7,000 you will get £5,225 tax free and will pay tax at 10% of the remaining £1,775.

You don't ever need to remember your tax code as it will change frequently (unlilke your NI number) throughout your working life anyway. Your employer will liaise with HMRC (Inland Revenue) to obtain the code. It's always worth checking it when it's sent to you though (they will explain how they have calculated it) as HMRC get them wrong a LOT of the time!

Hope this helps
 
Old Jul 22nd 2007 | 8:16 pm
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Default Re: NI # & Tax code #, what's the difference?

Originally Posted by LouiseD
Don't worry Flea it's not in the least complicated. As Scatty said, if you have no P45 to hand in to your new employer, they will give you a P46 form to complete - you just fill in the details with your particular circumstances - its only a short form, nothing big at all. The new employer will send it off to the tax office, who will then issue your tax code. In the meantime, you can still be paid, but your employer will put you on an emergency tax code. Any tax overpaid will be refunded to you immediately once your proper tax code comes through (usually a matter of weeks).

I didn't have a P45 when we returned in Feb this year either but it didn't affect anything at all, so don't give it another thought.

As long as you know your NI number that's the main thing.

Thanks for that Louise

Regarding the single persons tax allowance. I am not sure how i would stand on that. Although i am married, when i return in 2 weeks time, i have to leave my NZ husband behind until he gets his visa and the dog has clearance to fly.
Would i be considered a single person until he arrives, or will i have to be assessed as a couple fron the get go even though he is not in the country with me?
 
Old Jul 22nd 2007 | 9:13 pm
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Default Re: NI # & Tax code #, what's the difference?

Originally Posted by Fleaflyfloflum
Thanks for that Louise

Regarding the single persons tax allowance. I am not sure how i would stand on that. Although i am married, when i return in 2 weeks time, i have to leave my NZ husband behind until he gets his visa and the dog has clearance to fly.
Would i be considered a single person until he arrives, or will i have to be assessed as a couple fron the get go even though he is not in the country with me?
The term 'single' might be a bit misleading. The tax allowance applies to each individual so it doesn't matter whether you are married or not. Each person has the tax allowance regardless of their marital status.

When you return to the UK you will have the £5,225 tax allowance in place until 5th April 2008 (it's revised each tax year). When you start work with your new employer you will be asked to complete a P46 (as you won't have a P45 from a previous UK employer) and you will then be allocated your allowance. The questions that you must complete on the P46 are very straightforward and I have listed them below:

National Insurance number
Date of birth
Name
Address
Male or Female

You will also need to tick 1 of 3 statements - it's most likely that Statement A will apply to you (this statement says - 'this is my first job since 6 April and I have not been receiving taxable Jobseeker's Allowance or taxable Incapacity Benefit or a state or occupational pension' - this refers to the period since 5 April 2007 in your case).

I hope this helps but if I haven't made it clear (sometimes I think in accountant's terms!) just let me know.

Jules
 


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