What does a 1100l tax code mean?

What does a 1100l tax code mean?

A 1100L tax code means that your tax-free personal allowance is £11000. Simply put, that means £11000 of your earnings will be paid untaxed throughout the year, in equal increments over 12 months. The “L” refers to your status as a regular employee who is eligible for that tax-free personal allowance. Any income above £11000 will be taxed at the standard rates, and, if you make over £100000, your tax-free personal allowance may be smaller than £11000. Any income over this tax-free personal allowance, but below £33000, will be taxed at the basic rate of 20%.

What affects my tax code?

Many factors affect your tax code, including the aforementioned tax-free personal allowance. First, your tax-free personal allowance will be calculated; next, any untaxed income or job benefits with monetary value are added up, and that amount is deducted from your previously determined personal allowance. The last digit of this number is removed–hence, £11000 becomes 1100. The ending letter (L, for example) refers to any situation which may affect your personal allowance, such as the Marriage Allowance, or being taxed at Scottish rates.

tax code 1100l

Benefits in kind

“Benefits in kind” is the term for those job benefits with monetary value which are not included in your salary, such as childcare or a company car. As mentioned earlier, while these benefits are not included in your salary, their value will be deducted from your personal allowance.

Expenses

Claiming tax relief for expenses is one way to ensure you are paying only as much as you truly owe in taxes. “Expenses” in this context refers to items or travel purchased solely for work use, such as business travel. It is important to note that you cannot claim tax relief for expenses your employer has reimbursed you for, or for items purchased despite your employer providing an adequate alternative. To claim this tax relief, use your Self Assessment tax return if that is already your usual practice, or use form P87 if you do not file a tax return for any claim below £2500. If you wish to claim an amount over £2500, you must use the Self Assessment tax return.

What is the the tax code for 2017-2018?

The 2017-2018 tax code is 1150L, meaning your tax-free personal allowance has been raised! Additionally, the “basic rate limit,” or the amount of your income taxed at the basic rate of 20%, has been raised to £33500 from £33000

What if I have two jobs?

If you have two jobs, one job will be classed as your “main employment,” and you will receive your tax-free personal allowance in full. For your second job, all of your income will be taxed at the standard rate of 20% up to £33,500. This job will be considered your “secondary” job. If your income at your “main” job is less than your tax-free personal allowance, then you may request your personal allowance be distributed between both your incomes, or you might request a refund at the end of the year (when you file your tax return, if you do so).

Leave a Reply

Your email address will not be published.

Name *
Email *
Website