tax code and deductions calculation ..pickle

monkeypea

I would really appreciate some help with :
A) my tax code , Checking a deductions calculation and C) working out what order to tackle this- i have cognitive difficulties due to my ill health and find situations like this really difficult to find my way around- so i would really appreciate your help.:o


I am a single person and was ill health retired in august 2008. I sent my P45 ( tax code 503L , pay to date £13412.75) to DWP as requested and started to recieve Incapacity benefit . I payed no tax on IB as i had no other income, whilst waiting to finalise pension.

I recieved a substitute P60 from DWP year to April 2009 stating
tax code 603L week1:Y

A) Is tax code 603L week1:Y the correct code for a single person or is it an emergency code?
I wil be recieving a pension of £12215 gross per annum and my IB will be reduced because of this. I have no other income or benefits -what tax code should i be on going forward?

deductions calculation
i have gross arrears of pension from 31/08/2008 to 30/06/2009 owing to me for the sum of £10,152.73. After deductions i recieved £7,105.00. This seems to me to be more than 20% deduction (more like 30% But please check my calculation!) looks to me that i have had more duducted than i should have?

C)IF my tax code is incorrect for a single person A) ...IF i have had more deducted from my pension arrears than i should have , how do i sort that out?
Now that i know what annual pension i will be recieving i know i need to contact DWP/JCP who will reduce my IB and the tax i pay on it accordingly.

I am not sure who informs who with regards to Tax office, pension provider and DWP.
And i would really like to sort my tax code out as soon as possible so i get taxed correctly month by month rather than have a mess at the end of the year. So any advice on what order to tackle these issues would be very much appreciated.

Many thanks in advance for your help, im a bit embarrassed that i cannot get my head round how to tackle this but my brain doesnt allow me to solve logistics like this any more.:o

fengirl_2

In answer to your questions:
A) 603L week 1 is emergency code. This means that the benefit office has nnot made the refund due to you for 08-09. You need to send yur P60 to your tax office asking them to check for a refund. Let them know all your employments and periods of caim for the year. For this tax year your tax code will be your personal allowance of 6475 less whatever your annual IB is. The allowances remaining after deducting your IB will be available to set against your pension
The tax tables which are used to work out the tax due from you each month assume that, if you are paid £10,152 in a month, then you will be paid that each month. This brings you into the 40% tax band. Next month, and in the following months, this 40% tax will be gradually repaid to you when you revert to your normal monthly penson.
C) Your code is correct for a single person, it was just operated on a week 1 basis from when you claimed IB. As I have explained, you can write to HMRC asking them to check your liability for 08-9. As I have expalined under B, the over deduction of tax from yuour pension arrears will correct themsleves automatically through the coming year. You do need to inform yur tax office of the weekly rate of your IB so that they can include it in yur code number as soon as possible.