Tax Codes Flashcards
1
Q
if marriage allowance occurs, how does this impact tax codes?
A
receiver has 12,570 + 1,260 and has M
giver has 12,570 - 1,260 and has N
2
Q
if total allowances - total deductions is positive, what happens?
A
last digit is taken off and L is added at the end
3
Q
if total allowances - total deductions is negative, what happens?
A
last digit is taken off, 1 is subtracted and K is added at the front
4
Q
what does L indicate?
A
employee is entitled to personal allowance
5
Q
what does K indicate?
A
employee must pay more tax
6
Q
how is unpaid tax from previous periods handled?
A
100/20 is applied (if in BRB) and then the sum is subtracted from total allowances
