The tax code that you fall under is not something for you to choose. The HM Revenue and Customs allocate this code to you, and it is to help you or your employer determine how to calculate the amount of taxes that are supposed to be remitted to the government. Apart from helping you determine the amount of taxes that you are supposed to pay, it also says something about the amount of tax-free personal relief that you are entitled to, and any other benefits such as the allowances for the elderly, the blind, and so on. It can also say something about the state of your taxes; for example, if you fall under a tax code that ends in T, it means that the Supervisor of taxes needs to review some things about your in your tax return.
BR Non Cum
In this article, we are not going to look at all the ones that have been released and which are to be used for the 2011-2012 tax year. Instead, we are going to focus on the tax code that is known as BR Non Cum. In full, BR Non Cum refers to Basic Rate Non-Cumulative. If you fall under this umbrella, it means that you will be taxed at the basic rate of 20%, and that you will not receive any tax-free reliefs. This means that whether you are earning 500 pounds or 1,000,000 pounds, your tax rate will be the same. This is commonly referred to as proportional tax, which is quite different from progressive tax that the taxpayers in the other tax codes will be required to pay.
How Do You Get In?
Well, as already indicated, you do not choose the code that you want; it is the HM Revenue and Customs that allocates you the one that you will use. For you to get the BR Non Cum, you must be a person who has opened a company after previously working as an employee. For this reason, the officials at the HM Revenue and Customs will assume that this is not your only source of income, but that it is an additional source of income. If it happens that this is your only source of income and they become aware of it, they will allocate you a tax code that ends in L, which are the most common tax codes around.
If you feel that you were wrongly allocated the BR Non Cum code, it is advisable that you call your local tax office and then inform them of this mistake. They should be able to correct their mistake with immediate effect.