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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.

  1. Why did I receive two letters?
  2. What will be my effective tax code?
  3. Is it 944L or D0? If it is going to be D0, why is it D0? HMRC website states that D0 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 as D0?
  4. What would be the next steps that you would suggest?
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It sounds like HMRC are acting on various pieces of information out-of-order.

The best thing you can do by a million miles is to ring them and explain the circumstances and the background and get it sorted out on the phone so they have all the information in the right order.

  • Thanks, but am I correct in understanding that they have got the information in the wrong order? – Kanini Apr 6 '13 at 12:38

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