Shocks in the 2016/17 PAYE codes

[DaveB]

They will try to.

As the linked article points out you can write back to them and request that the tax code be changed to remove the dividend estimates.

[slice16]

This now scares me... as I have been wondering how my tax bill next year is going to screw me over.

Basically, the last two years I have been pretty giddy with the dividends I have taken out (buying a house and planning a wedding)... so I have done Payment on Account this year (totalling around 10k), and will have something similar 17/18. So with these new codes coming out.. I imagine they will basically take all my money from day 1??

[LisaContractorUmbrella]

K codes are good I thought? Certainly based on the calculator on here, it would get you at 81k takehome from 100k rather than 65k

No, something wrong there I think - on a K code you pay tax on more than you earn

[LondonManc]

The worst I have seen so far is a k3600 so far.

K codes are good I thought? Certainly based on the calculator on here, it would get you at 81k takehome from 100k rather than 65k

[SueEllen]

There is a useful link in that article.

https://online.hmrc.gov.uk/shortforms/form/P2

[SimonMac]

Shocks in the 2016/17 PAYE codes | AccountingWEB



Apologies if this is a KUATB post.

Time to keep an eye out for the the next round of coding notices.

There was something about this but I CBA to look for it, I think you an contact Hector and ask them to correct it to give you your proper code.

EDIT:

http://forums.contractoruk.com/accou...de-change.html

[Kenny@MyAccountantFriend]

The worst I have seen so far is a k3600 so far.

[DaveB]

Shocks in the 2016/17 PAYE codes | AccountingWEB

The dividend tax comes into effect on 6 April 2016, and applies to all dividends the individual receives in excess of £5,000 per tax year. The average company director who takes a modest salary within his personal allowance, and the rest of his income from the company as dividends, will pay more tax in 2016/17 than he did in 2015/16.

Under self assessment this additional tax would be payable by 31 January 2018, as the balancing payment for that tax year. However, HMRC doesn’t want to wait that long for the extra tax, so it has amended the tax codes of many owner/directors to “code out” an estimated amount, which is approximate to the dividend tax due for the year.

Apologies if this is a KUATB post.

Time to keep an eye out for the the next round of coding notices.