Tax code D0???????

zaksmum · 16 January 2010 at 10:27AM

Help!!!!!!!!!! My husband took ill health early retirement in September 09 - he's nearly 60. He gets an ill health occupational pension of about £270 a week and got a tax code of 647L.

This morning he got a new tax code through for use from April 2010. The letter said the tax code will be D0 from then, which they say means he will pay tax on his pension at 40%. He has no other income, but some savings.

We'd worked out we could live on the £270 a week as I get incapacity benefit too. But if he has to pay tax at 40%, we will have much less.

The letter says "your main HM revenue & customs office has worked out your tax code for your other employments(s) or pension(s) but we both need you to check that our information about you is correct."

There ARE no other employments or pensions though.

Have they made a mistake? We can't ring them till Monday but my husband is panicking.

CLAPTON · 16 January 2010 at 10:53AM

probably they are assuming he is still in full time employment

don't panic and phone HMRC on monday

suso · 16 January 2010 at 9:17PM

No need to panic,

just call them and explain the pension is the only form of income, and they will issue a code of 647L to it for next year.

They just haven't received notification that the employment has finished so think the pension is a second income. Presumably at some stage in the past your husband was a higher rate tax payer which is why they have issued the 40% code

Not sure if your not able to ring them them until monday, or your think the tax office is shut till monday, but you can call call them tomorrow as they are open 7 days a week 8am to 8 pm

zaksmum · 17 January 2010 at 11:09AM

Thanks so much Clapton and Suso. My husband was never a higher rate taxpayer though. Two of his ex colleagues also retired on ill health grounds at the same time, and they haven't had this D0 tax code.

Wouldn't the company have notified the tax people automatically that my husband has retired? He's really worrying.

System · 17 January 2010 at 11:20AM

zaksmum wrote: »

Wouldn't the company have notified the tax people automatically that my husband has retired? He's really worrying.

The company is supposed to send a P45 to HMRC to let them know when an employee has left however they don't always do what they are supposed to do and that's why you should never rely on them and always inform HMRC yourself if there is a change in your circumstances.

As everyone else says there is no need to panic as it is very easily fixed by making a phone call on Monday morning.

Tarasam · 17 January 2010 at 12:16PM

There are lots of instances at the mo with codes for the coming tax year due to the new computer system that was installed in the summer, please call HMRC and get us to sort it out for you, it will be corrected instantly.
If your code notice is for 10/11 tax year and you are able to wait to contact unitl mid Feb I would suggest you wait as HMRC have at least 250 calls in the queue at any one time due to the nearing self assessment deadline. These codes have NOT YET gone to employers / pension providers.

scotland2010 · 17 January 2010 at 10:46PM

kellyshay wrote: »

There are lots of instances at the mo with codes for the coming tax year due to the new computer system that was installed in the summer, please call HMRC and get us to sort it out for you, it will be corrected instantly.
If your code notice is for 10/11 tax year and you are able to wait to contact unitl mid Feb I would suggest you wait as HMRC have at least 250 calls in the queue at any one time due to the nearing self assessment deadline. These codes have NOT YET gone to employers / pension providers.

Hi there,

I work at a payroll department in Glasgow and process a high number of payrolls for clients. Every day we are receiving new tax codes through for employees and every day they are wrong. I phone up Monday, got told I cant sort this out with this department (even though you tell us you have a shared comp system ?), phone the same number the next day to have the error fixed in 5 mins, with this phonecall the member of staff asked for no paye number or any information from me to answer my questions. Make sure you get the new tax code in writing sent to you and ensure its applied by april 2010, HMRC are a joke when it comes to sorting out their problems !

Tax code D0???????

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