"K" Tax Code

[WordIsBond]

Nope. It has an effect on how much tax is taken out of salary payments and sent to HMRC. But it has no impact on self-assessment.

When you file self-assessment, the calculation is done on how much income you have, not on what your tax code was.

You are right in that a K code indicates that extra tax is due, but you are wrong about it having anything to do with self-assessment. A K code instructs an employer to deduct extra tax, when doing payroll, and send it to HMRC. But it's payroll only.

To use your example (and assuming you've done it right, not bothered to check), a K16 code would result in tax payroll deductions of £7164 and a 1150L code would result in payroll deductions of £4700. But when it comes time to file self-assessment, it all comes out in the wash. If you had payroll deductions of £7.1K and it should have only been £4.7K, you'll get a nice payment of £2.4K when you file your SA. If that's your situation, file early and get your money back.

[ThomserveBAS]

I don't think you are confused at all. I think someone else is.

With respect I don’t think I am confused.

The “K” tax code is (from what I’ve been reading) the opposite of an “L” tax code. That means there is no personal allowance and the numerical code on the end is additional tax, so K16 is £160 of additional tax due. So for example, last year on the K16 code on a “salary” of £35k would result in tax of £7164 whereas the same amount on what I deem to be the correct code (1150L) would only result in a tax liability of £4700.

So the removal of the personal allowance has a direct impact on self assessment does it not?

[WordIsBond]

I'm a bit confused - why would her tax code make any difference to her tax calculation on her self-assessment? They are used for PAYE.

I don't think you are confused at all. I think someone else is.

[TheCyclingProgrammer]

I'm a bit confused - why would her tax code make any difference to her tax calculation on her self-assessment? They are used for PAYE.

[SimonMac]

In an attempt to get ahead of the curve, I decided to get my wife's self assessment ready and got a bit of a shock, it's massive (comparatively). Given our circumstances haven't changed (I say "our" as she is a 50% shareholder in my LTD company and takes the same directors remuneration and dividends as myself) I'm struggling to work out why she ended up on a K16 tax code and I didn't.

I've done a bit of digging and it seems HMRC have been handing out "K" codes like sweets of late, plenty of complaints of people being put onto the wrong code, specifically these "K" codes (which I'd never heard of until now).

Of course HMRC is too busy to speak to her right now, so I've submitted an "update" via the website (more of a rant than an update because as far as I'm concerned, the code is just wrong).

I wondered if anybody else had been in such a situation or if anybody knew of a reason why my wife might have been put on a "K" tax code and not myself.

Assuming you have her Tax Account details log into here:

https://www.tax.service.gov.uk/check...us-year/2018/8

And see if there is any glaringly obvious errors

[northernladuk]

In an attempt to get ahead of the curve, I decided to get my wife's self assessment ready and got a bit of a shock, it's massive (comparatively).

Bet the wife wished she could say the same.

I'd blame whichever numbnuts did her self assessment last year

Does this ring true to her situation? Any other income?

K code | AccountingWEB
List of tax codes: check you're on the right UK tax code for 2019/20 | lovemoney.com

[ThomserveBAS]

In an attempt to get ahead of the curve, I decided to get my wife's self assessment ready and got a bit of a shock, it's massive (comparatively). Given our circumstances haven't changed (I say "our" as she is a 50% shareholder in my LTD company and takes the same directors remuneration and dividends as myself) I'm struggling to work out why she ended up on a K16 tax code and I didn't.

I've done a bit of digging and it seems HMRC have been handing out "K" codes like sweets of late, plenty of complaints of people being put onto the wrong code, specifically these "K" codes (which I'd never heard of until now).

Of course HMRC is too busy to speak to her right now, so I've submitted an "update" via the website (more of a rant than an update because as far as I'm concerned, the code is just wrong).

I wondered if anybody else had been in such a situation or if anybody knew of a reason why my wife might have been put on a "K" tax code and not myself.