I was employed with company A from May 2011 till December 2012. I started a new job in January 2013 and the last pay that I got from Company A was on January 15 2013. The payslip stated that my Tax Period
was 10
and Tax Code
as 0T -1
. This code is understandable from the information provided here. Read section titled When an employee receives payments from their employer after leaving.
My new company pays my salary 2 weeks in advance and 2 weeks in arrears. Now, I got paid during the month of February including the arrears for month of January.
The payslip of February had the Tax code as 0TM
. Now, I did not understand why I had the tax code of 0TM
but I understand that this could have possibly happened due to the fact that I may not have submitted my P45 by then.
The payslip of March had the Tax code as 810L
which is also fine.
However, I have received a letter from HMRC stating the following -
Your tax code for the year from 6 April 2013 to 5 April 2014 is 944L
.
I also have another letter (which came in the same post) that
Your tax code for the year from 6 April 2013 to 5 April 2014 is D0
. This is worrisome as it states that I will pay tax at 40% on my income from company B.
- Why did I receive two letters?
- What will be my effective tax code?
- Is it
944L
orD0
? If it is going to beD0
, why is itD0
? HMRC website states thatD0
is most likely used for a second job or pension, but since I have resigned from my old job and only employed by Company B, which is my current and only job, why did it come asD0
? - What would be the next steps that you would suggest?