I am wanting to get my wife's PAYE checked out. She has had a "K" tax code
for several years now. Can anyone point me in the right direction to any
companies who provide this service? I am in Leeds, West Yorkshire.
Do these companies charge a flat fee, or take a percentage of any overpaid
Easiest and cheapest is just to do a tax return. If you do it online it
will even calculate the tax for you.
Assuming (almost) all her income is PAYE you just copy the numbers from
her P60 into the relevant boxes on the employers page, fill in any other
required boxes with N/A, 0 etc as appropriate and the look to see how
much tax it says you owe or are due. Obviously you need to get the bank
interest numbers etc correct before you submit the return. Not sure if
you can fill it in unless you've already requested/been told to do a tax
If it's all just PAYE then it's easy to work out yourself as well except
that I cannot remember what limits the different tax bands take effect.
I can't see how this can be the easiest.
You can't just decide to "do a tax return" you have to apply to do one.
If you're going to have to contact the revenue to get to do this return,
surely it's easier just to ask them the actual question instead.
What do you mean "get her PAYE checked out"? Do you mean that her employer is
calculating the PAYE tax correctly, or that her tax code is correct? For the
former you can post details here and someone will do it free, but it's unlikely
to be wrong. For the latter you need to refer the PAYE coding notice you should
have been sent, to see how the code is made up. Or phone your tax office, they
are usually helpful.
Usually they take a percentage. Most are a rip-off, and also with
self-assessment working on a pay now check later basis, you could make a claim,
get it, pay the percentage fee, then find a few months later HMRC get round to
checking your tax return and find you're not entitled after all and demand a
As others have told you, HMRC will do this for free. If the only income is
from the employment, then the K code is likely to be from Benefits in Kind
that are related to the employment. However, this could be from a variety of
reasons all of which would be speculation at this point. Did she get a P60?
Did she get a copy of the P11D. Does she have any other income?
When you are happy the code is correct, there is a PAYE and NIC calculator
and you can check a payslip there. Also, there are people
here who will check this for you for free, so dont waste you money.
IMHO, it's especially important to check the whole thing in a K-code case.
It implies other income / benefits / earlier-year adjustments, which may
well be a mere HMRC estimate. Further, the cap on K-code tax deductions can
result in insufficient tax being deducted (which would never do....)
She only has one income, that's from her employer. Her wage slip is not the
easiest in the world to decipher. Basically, she gets a basic wage, then
gets an extra 10% on top (called a value account), to pay for things such as
company car. She only works 24 hours a week and the "value account" is
pro-rated. From her "value account" she pays the lease for her company car,
also pays for private medical. Also her pension scheme is non-contributory
(from herself), it's only company contributions. Given as she only works 24
hours a week, the value account only covers approx half of her benefits, the
remaining comes from her salary.
I realise the company car and private medical insurance are taxable
benefits, but given she pays appox half the cost of these from her own
salary, shouldn't the taxable benefit be pro-rated?
So it seems the K-code is a consequence only of her co.car and medical
insurance. If she is also paying something towards both of these, her
contribution will reduce the tax on the benefit, so I'm quite surprised she
still ends up with a K-code.
It's certainly sensible to get it checked and (as others have said) you
should find HMRC themselves quite helpful.
Alternatively, try to find recommendations for a local, small (maybe one-man
band?) accountant. At this time of the year, they may be willing to give
you a good deal. But bear in mind that if you've got several years to
check, the fee is likely to reflect that. And she'll need to produce quite
a few figures for each year - her contributions to car and insurance,
original car(s) list price, P11D, P60, etc.
I have a sneaky feeling there wont be a P11D. I think the employer may be
trying to payroll the benefits. Can the OP give any details. I dont mean
name or refernce numbers, but certainly whether there is a P11D return. What
type of car is it? What is the monthly pay and how much is the value
The taxable benefit for her company car was something like 5500. Can't
recall the exact figure and don't have her P11D to hand. The vehicle is a
VW Golf GTI 5 door, 56 plate (only extra being the 6 cd autochanger).
There is a P11D. Is this the document which details taxable benefits and
details their value?
Not sure about the monthly pay / value account, will dig out the info when i
Car is a VW Golf GTI 5 door, 56 plate (only extra being a 6 cd autochanger).
The employer should record the employee contributions on the P11D. Its in
his interest to do so as this reduces the class 1A NI due. It should be sown
in the car benefit calculations.
Is there any fuel benefit?
Thats not enough detail but assume this is the 1.4 basic model with List
price circa £17500 with fuel, the benefit would be:
Car benefit charge (2007/2008) £3,500.00
Car fuel benefit charge (2007/2008) £2,880.00
With this years allowances of £6035 this wold not result in a K code so
there must be something else.
No fuel benefit. Does it matter that my contributions are on a monthly
basis, not a lump sum contribution to the car? As I said earlier, her
"value account" which is meant for her car etc, does not cover for the cost
of her car and private medical, so approx half the cost of these are being
funded by her salary, not her value account.
has this as follows:-
Car benefit charge (2007/2008) £5,250.00
so for this value account. How does this work. Is this like a budget that
she can use for benefits. For instance, she has salary plus £6000 in
benefits. In this case, after the car, there would be £750 left. If the
Private medical costs exceed this, then she has to start making payments
from net pay or gross pay.
Or is this completely wrong?
Just say for example, salary is 28000. Value account is 10% of salary, so
2,800. From the 2,800, she has to buy her benefits. In my wife's case,
the company car and private medical insurance. Car costs 385 per month,
private medical costs about 90 per month. This equates to 475 per month,
5,700 per year. So, 2,900 of her salary is used to pay for these
benefits. So, she is paying tax on the full amount of her benefits, when
over half of the cost of these so called benefits she is paying for from her