Just switched to Ltd and my Tax Code for 2013/14 is 75L. Implications?

[Daventry]

Well, the automatic system said they're busy right now and hung up on me.
Great service!

[northernladuk]

Well, the automatic system said they're busy right now and hung up on me.
Great service!

They didn't win the worst customer service award for nothing!

[Daventry]

Have just got off the phone with HMRC - they say the tax code doesn't matter anymore because now I'm self-employed and I will pay tax through a Self Assessment. Does this make sense?

[Brett at Nixon Williams]

Have just got off the phone with HMRC - they say the tax code doesn't matter anymore because now I'm self-employed and I will pay tax through a Self Assessment. Does this make sense?

The tax code only determines how much tax you pay on the earnings during the year, i.e. in your case over £750 on a 75T code, at present. As a director of a limited company you will have to complete a Self Assessment tax return. Any tax under/over paid at source will then be due/refunded at that point.

I hope this helps.

Brett

[Clare@InTouch]

Have just got off the phone with HMRC - they say the tax code doesn't matter anymore because now I'm self-employed and I will pay tax through a Self Assessment. Does this make sense?

Have you registered as self employed, or as a company director? Go careful if the former as they will start sending you bills for NI contributions.

Unless you are actually self employed that is, then you're fine!

[Daventry]

I'm registered as director.

They have just changed it - the lady was lovely and had loads of patience with me. Had to look up my PAYE reference code, I didn't even remember I have one...