This article has been written for the Koru Kids Nanny Service for nannies who are already working for a family.
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First things first: tax codes are assigned by HMRC and not by Koru Kids. Legally, we have to follow government regulations to ensure your income is assessed, declared and taxed appropriately.
Most people in the UK get a Personal Allowance of tax-free income - this is the amount of income you can have before you pay tax. The standard Personal Allowance is £12,570.
Where Can I Find my Tax Code?
You'll see your tax code noted on your payslip, along with a summary of any tax deductions that have been applied.
What Does my Tax Code Mean?
Your tax code is assigned based on your employment status as declared in the set-up form you completed after you accepted a job offer from a family and started working with them. Your tax code is assigned by HMRC, not Koru Kids.
Here are a few of the most common tax codes and what they mean:
BR Tax Code:
This stands for "Basic Rate" tax code, and is usually applied because you told us that you have more than one source of income - this could be multiple jobs, working with multiple families through Koru Kids, or receiving a pension/benefits.
If your circumstances have changed and this is now your only income, we may be able to update your tax code. If you can provide a P45 from your previous job, please email it to care@korukids.co.uk.
Even if you're a student, or earn below £12,750 in the tax year, you can still be put on a BR Tax code whilst HMRC work out your correct code.
If you think your tax code is incorrect, you'll need to contact HMRC directly, following the steps below.
0T/0TX Tax Code:
If you've been placed on a 0T/0TX tax code, this means you didn't complete your employee setup form before we processed your pay. To be set up correctly, you need to declare your current employment status, and give us your details, including your National Insurance Number.
To share this information with us, please send an email to care@korukids.co.uk.
If you think your tax code is incorrect, you'll need to contact HMRC directly, following the steps below.
1275L Tax Code:
When you have two or more jobs your salary will be processed on the 1257L tax code by your first employer and on BR code by the second employer. This means that you get your tax free allowance on your first job and you pay tax on your other job.
If your combined income from all sources is under the tax free allowance HMRC may be able to split your allowance between them. To do this, or if you think your tax code is incorrect, you'll need to contact HMRC directly, following the steps below.
1275LX Tax Code:
If you see X at the end of your tax code, this means your tax is calculated only on your earnings in that individual pay period and it is not taking into account any tax you have already paid in this tax year. This code is applied if you told us that you have had another job in this tax year, but have not supplied a P45.
If you think your tax code is incorrect, you'll need to contact HMRC directly, following the steps below.
Other Tax Codes:
If your tax code is different to these shown above you can find out more information on the government website here.
How Can I Change my Tax Code?
If you think you're on the wrong tax code, you'll need to speak to HMRC directly about this - they won't speak to anyone else about your personal tax situation.
HMRC will ask for the PAYE references of the family who employ you in order to make any changes to your tax code - you can request these from us by clicking the button below.
If you've only recently started working for the family, chances are we may not have your PAYE references yet. We have to wait for HMRC to do their bit and supply the references back to us - this may take a few weeks, but we’ll send them to you as soon as we can.
You can contact HMRC (the Income Tax Office) on 0300 200 3300 and explain your status. They may issue you with a new tax code which you will receive either in the post or you can sign up to the online service to be able to see your tax position and code changes online.
When you do receive the new tax code from HMRC, you will need to share it with us. Please send an email to care@korukids.co.uk with your official tax code change notice from HMRC - this can be a photo of the letter you receive, or a screenshot of your personal tax account.
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