My tax code has changed from 1050P to 378T. Will I pay more or less tax

Found 3rd Mar 2014
Community Updates
Your allowance has been reduced so that the amount you can earn before tax is £3780. However, it looks like it is a temporary code denote by the letter 'T'. Have you just started a new job?
Common tax code letters and what they mean
Letter Reason for use
For people born after 5 April 1948 and eligible for the basic Personal Allowance - 944L for the 2013 to 14 tax year. It is also used for 'emergency' tax codes (read more in the section 'If you're on an emergency tax code')
For people born between 6 April 1938 and 5 April 1948 and eligible for the full Personal Allowance
For people born before 6 April 1938 and eligible for the full Personal Allowance
If there are any other items we need to review in your tax code, for example the income-related reduction to the Personal Allowance (read more in the section 'Effect on your tax code if your income is above £100,000').
Tax code '0T'. See the next table for circumstances when code 0T is applied
When your total allowances are less than your total 'deductions' - read more in the section 'How the 'K code' works'
Much more - £10500 - 3780 @ 20% = £1344 more tax per year

£112 more tax per month if you a 20% tax payer.......
the number refers to the amount of money you can earn before tax starts to be deducted. so your old tax code allows 10500 before tax is applied to income over that amount. The new code means 3780 can be earned before tax. So you will be paying more tax with 378T.

The fact that you have T on your new tax code means the HMRC has reviewed your tax code for some reason and changed it. I would ring them up and query it if there has not been any significant change to you income.

Edited by: "airbus330" 3rd Mar 2014
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