Confused about tax i'm paying

MarzipanFish

Hi, I'm not sure if this is the right place as I don't think I'm trying to cut tax but I just have no idea how to work out how much i should be paying. My total income will definitely be under the £6475 allowance for the whole year but is very unbalanced.

My income comes from 2 jobs and a pension. I've been on the payroll for both all year but got a 20-30hr a week summer job on one of them

The pension is a teachers pension which was my mum's who died earlier this year. I get payments from it while i am in education. The lump sums in may are actually backdated payments from feb - may so most of it should have been paid last tax year but i don't know if that makes any difference.

The first number is the total before tax and the tax i've paid is in brackets.

April
job 1 £0 (0)
job 2 £0 (0)
pension £0 (0)

May
job 1 £59 (0)
job 2 £0 (0)
pension £1937 (279)

June
job 1 £3 (0)
job 2 £0 (0)
pension £191.86 (0)

July
job 1 £3 (0)
job 2 £427.14 (0)
pension £191.86 (0)

Aug
job 1 £0 (0)
job 2 £565.27 (0)
pension £191.86 (22.20)

Sep (expected)
job 1 £0
job 2 £828
pension £191.86

Aug - April (expected per month)
job 1 £0 - £10
job 2 £0
pension £191.86


I got a letter from pensions about a £2400 limit before tax but i don't know what that's about

dzug1

What is your tax code in each job/for the pension? Are any of them on a month 1 basis?

The backdated pension is normally taxed in the year it is paid, not when it was due.

MarzipanFish

Thanks for the reply. I thought that was likely about the pension. Sorry to be this clueless but how would i know if it was on a month 1 basis? I've just googled it and my codes don't seem to have any Ms in so probably not.

job 1 647L from the July payslip but i've had a letter with a different one on in August (381L)

job 2 NT 1 (i was given a form to sign in June to say i was a student and earning less than £6475 this tax year)

pension 240T (got a letter recently saying it had changed from BR)

MarzipanFish

It seems like the allowances in the tax codes plus estimated income from savings which i had to fill in a tax form about do roughly add up to the normal limit so i suppose what i need to know is

- Is there any reason the limit for the pension has been set as £2400?
- I'm never going to earn £3810 from job 1 (£500 would definitely cover it) so can i move some of that allowance onto the pension?
- How? visiting the tax office?

And also
- should job 2's code be NT or should it be the allowance i have left?

dzug1

The pension limit is £2400 coz that's (approx) what you are likely to get in a year and it ain't gonna vary much and should result in no tax. (The back payment will complicate that though - maybe worth pointing that out to the tax office)

You are better off with job 2 being NT - takes it out of the equation altogether unless your estimates of your annual income are way out.

You do have a case for reshuffling your allowance between the pension and job 1 - done correctly this should stop you paying tax altogether.

How sympathetic HMRC will be I don't know - they may play ball - they may say reclaim at the end of the tax year