NI # & Tax code #, what's the difference?
#1
Thread Starter




Joined: Jul 2007
Posts: 330

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.
Just want to get things straight for our return next year.
#2
Forum Regular



Joined: Jul 2007
Posts: 211
From: Spain then Massachusetts USA











I called up the Revenue to get my tax code. It is a different number to your NI.
#3
Forum Regular



Joined: Feb 2004
Posts: 173
From: florida











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
#4
intresting,i never new about a tax code so what is it and do u still need to use your NI aswell
shaz
shaz
#5
Forum Regular



Joined: Feb 2004
Posts: 173
From: florida











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
Made up number
GH 45 29 76 C
The last letter will end in either A B C or D
#6
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
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
shaz xx
#7
Forum Regular



Joined: Feb 2004
Posts: 173
From: florida











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
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
#8
Forum Regular



Joined: Feb 2004
Posts: 173
From: florida











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
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
#9
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
#10
Thread Starter




Joined: Jul 2007
Posts: 330

Thanks all, very helpful
#11
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!
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!
#12
Life is more than a dream






Joined: Oct 2006
Posts: 1,389
From: Kings Moss, UK - it's a bit like Emmerdale











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!
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!
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.
#13
Forum Regular


Joined: Nov 2006
Posts: 59











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
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
#14
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.
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?
#15
Forum Regular


Joined: Nov 2006
Posts: 59











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?
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?
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



