Newbie need helped please..Do I need to be on W1 Tax code- Umbrella

[Lootoo]

Y

I wasn't explaining it to you, it was for the OP who would have been confused by your claim which you repeat above. Of course cumulative vs W1 would affect take home over a period of time dependant upon your previous earnings and any non-earning period during the same tax year. That is the whole point of it

I rummaged through my files and found the letter HMRC sent to me saying they were advising my umbrella my tax code is 970L, this was in Late July 2014, just after I started with them. However the umbrella have managed to turn this into 970LW1, but they don't seem to believe me. So bit stuck.

Calling HMRC is pretty tough, they like cutting me off and tbh they issued it to my umbrella ok so really, I need to speak to someone a bit more senior at the umbrella next week !!!

I don't understand tax codes but I thought emergency codes meant overpayment of tax, and I thought W1 was an emergency code.

[tractor]

...

Y

I rummaged through my files and found the letter HMRC sent to me saying they were advising my umbrella my tax code is 970L, this was in Late July 2014, just after I started with them. However the umbrella have managed to turn this into 970LW1, but they don't seem to believe me. So bit stuck.

Calling HMRC is pretty tough, they like cutting me off and tbh they issued it to my umbrella ok so really, I need to speak to someone a bit more senior at the umbrella next week !!!

I don't understand tax codes but I thought emergency codes meant overpayment of tax, and I thought W1 was an emergency code.

Emergency codes do not necessarily mean overpayment of tax. It's more the underuse of allowances.

• If you joined your new umbrella in Wk1 of the tax year and went on W1/M1, there would be little difference in what you would pay in tax on an emergency basis.
• If you joined on Wk20, having earned nothing up to that point in that tax year and went on Wk1/M1, you would not be able to take advantage of your cumulative allowance (actual tax allowance/52) * 20 until you are assigned a proper tax code by HMRC.

As we are now only a few weeks away from the end of the current tax year, your lazy umbrella really should have sorted this out by now. Get on to them and ask for a statement of what they have actually done about it. It won't even matter after the tax year ends because if they don't sort it out by then, they should automatically roll you over onto a proper tax code and it will be up to you to fix it.

[ASB]

You can get a notice of coding from your sa online account. Show to brolly.

in any event it will only make a difference if their are any weeks this year in which you have earned less than 200 quid. (Actually 9709/52).

The effect is that these weeks unused allowance wont be carried forward.