Tax Code on retirement

bigfreddiel

My partner has just retired from NHS - lucky sod - and has had a revised tax coding I'm not sure I understand.

Its changed from 543L to 17L

This is the detal and it says:
You need a tax code so the E&N Herts NHS trus can work out how much tax to take off the payments.......
Here is how we worked it out
your personal allowance £5435
your state pension - £5263
a tax free amaount of £172

seems an odd way of working it out but apparently the Dept of Work and Pensions cannot take tax off their payments!

Cheers

fj

jem16

It's normal practice.

All payments made by the state are paid gross. Any necessary tax to be taken will be by an adjustment to your tax code.

fillerboy

Does this mean they can change the code even if you have 13 years left in employment, I was confused by the change to 17L myself.

jem16

fillerboy wrote: »

Does this mean they can change the code even if you have 13 years left in employment, I was confused by the change to 17L myself.

You may have been better off starting a new thread on the Tax board rather than dredging up one over 2 years old.

As to your question, tax codes usually change every year with the changes to the personal allowance. Normal tax code at the moment is 647L and as from April it will be 747L.

As to why you have a tax code of 17L ( which is way lower than the norm) what does your P2 coding notice say?