PAYE Tax

What is the PAYE reference?

The PAYE reference is 073/C16.

How is my tax code calculated?

HM Revenue & Customs (HMRC) instructs us of which codes to use however we are not given information on how they are calculated. You should receive notification directly from HMRC when a new code is issued explaining the calculation. If you have not received this or require further information you should contact the West Yorkshire and Craven office of HMRC.
The dedicated line for clergy payees is tel: 01274 205 714 (please have our reference 073/C16 and your National Insurance number to hand when you make a call).

Why does my tax code have NC at the end of it?

NC = non cumulative. This means that the new code takes effect from the month in which it is received i.e. it is not back dated.

A cumulative code i.e. a code without NC after it, is backdated to 5 April and generates a tax rebate or a higher tax deduction in the month in which it is input.

Why does my tax deduction have a minus sign in front of it?

The minus sign indicates that a tax rebate has been given .

Why did I pay more/less tax this month?

This may be due to a change in non-taxable pay (see our section on tax-free allowances) and/or a change of tax code.

A change to a higher numbered code = more tax allowances i.e. less tax is due.

A change to a lower numbered code = less tax allowances i.e. more tax is due.

If the new code has NC after it, it has not been backdated; therefore the deduction will be the same each month until we receive a revised tax code.

If the new code does not have NC after it, the change has been backdated to 5 April. The first month in which the new code has been operated will include the backdated adjustment; therefore there will either be a tax rebate or a higher tax deduction.