Pl how much tax should I pay?

loulou41

I received a letter from the tax office this morning regarding a new tax code. My NHS penison is 15k a year and after personal allowance and state pension, I have a tax free of £1131 making my code to be 113L. I have been to the tax website and I should get approx more than 1k+ a month, is this correct? At the moment, I am just getting £9. I think the NHS pensioners are getting a 5%, but have not received any confirmation yet. Thanks

CLAPTON

loulou41 wrote: »

I received a letter from the tax office this morning regarding a new tax code. My NHS penison is 15k a year and after personal allowance and state pension, I have a tax free of £1131 making my code to be 113L. I have been to the tax website and I should get approx more than 1k+ a month, is this correct? At the moment, I am just getting £9. I think the NHS pensioners are getting a 5%, but have not received any confirmation yet. Thanks

what do you mean ...'I'm just getting £9.'?

Mikeyorks

loulou41 wrote: »

At the moment, I am just getting £9.

Don't understand that bit? Intended to be £900 net from NHS / month?? Or your existing Code is 9??

Can't answer your question without knowing whether we're talking a new code for 09-10 (ie from April 09) ..... and what your gross Personal Allowance is? (£6475 for 09-10 if under 65 .... or £9490 if over 65)

loulou41

Mikeyorks wrote: »

Don't understand that bit? Intended to be £900 net from NHS / month?? Or your existing Code is 9??

Can't answer your question without knowing whether we're talking a new code for 09-10 (ie from April 09) ..... and what your gross Personal Allowance is? (£6475 for 09-10 if under 65 .... or £9490 if over 65)

Sorry, it meant to be £900 net from NHS paymaster!!

loulou41

My gross personal allowance is £6475 for April 2009/2010 and I get state pension but am under 65. My new tax code is 113L for Aapril 2009/2010. Hope this is clearer!!

CLAPTON

15000 gross
less personal allowance of 1131
so leaving 13,869 to be taxed at 20% ie. tax = 2773
leaving 12,226 take home per annum or 1,018 per month.

Mikeyorks

loulou41 wrote: »

Hope this is clearer!!

Considerably. And Clapton has given you the answer at post #6.

Also note your State Pension should be inflated by around 5%. And check, when you hear from Pension Service, that it ties into the deduction on your Coding Notice (P2)?

loulou41

Thanks, I got about the same on the tax website. Guess, I cannot complain if I am getting £100 more a month. When I got my state pension last year, my NHS pension was greatly reduced, seems the little money you get is taxed. Thanks again Mikeyorks and Clapton.

Mikeyorks

loulou41 wrote: »

seems the little money you get is taxed.

Yes. The State Pension is paid gross ... but taxable. So the tax has to be accounted for against your NHS pension. This is done by reducing your Personal Allowances by the expected amount of your State Pension. So, in effect, your NHS pension suffers the tax for both itself and your State Pension.

Hence my note to check that your State Pension from 6.4.09 .... is the sum deducted on your Coding Notice. HMRC normally get it right - after the 1st year! - but worth a check.

loulou41

Thanks, my state pension from the 6th April is £103.99 a week, that's £5407.48 a year. In my PAYE coding notice, my state pension is recorded as £5344. These two figures do not match, should I contact the tax office? I also noticed hubby who usually get less state pension than me last year about £6 less a week got about the same amount (103.03) this coming taxing year, he is over 65 yrs. Should we query this? This

Mikeyorks

loulou41 wrote: »

Thanks, my state pension from the 6th April is £103.99 a week, that's £5407.48 a year. In my PAYE coding notice, my state pension is recorded as £5344. These two figures do not match, should I contact the tax office?

I wouldn't bother. The maximum tax at stake is just over £12. And it will cost them considerably more to rectify it ..... just let it lie.

Your husband's State Pension my have different component parts to yours ... and they can be inflated by different percentages .... hence it's caught up a bit (if I'm understanding that correctly?). Check the advice he's received from Pension Service against last years. Also check he's getting the correct age allowance from HMRC .. in his coding. (£9490 .... unless his income exceeds £22900)
http://www.hmrc.gov.uk/rates/it.htm