'BR' Tax Code

mike_L

I was receiving income based JSA for five months a while ago and due to receiving a monthly payment (£12.92p) from a defunct pension my JSA was reduced by £3.25 (per week). In other word my JSA was reduced by the other amount received; fair enough that’s how it is.

I’ve just finished a temporary work contract and have signed on and again claimed income based JSA. However, I’ve just received notice from HM Revenue & Customs that my tax code for this year (until April 2011) is ‘BR’ which I’ve now know means ‘basic rate’ i,e, 20%.

In other words not only will any JSA now be taxed at 20% but so will my monthly pension payment?

What’s that all about? Why would they suddenly do this?




(I've posted this elsewhere but aren't sure if it was the correct forum).

shikoku

I don't think your JSA will be taxed as such, it will be counted as income for when you start work again. Beyond that I can't shed any light. Sorry.

jem16

mike_L wrote: »

What’s that all about? Why would they suddenly do this?

If you are receiving a pension and JSA you will have two tax codes - one for the pension and one for the JSA. Which has the BR code been attached to?

(I've posted this elsewhere but aren't sure if it was the correct forum).

The tax board would be best.

mike_L

Both.

I was notified of this ‘BR tax code’ decision by two letters from different HMRC departments, one referring to my JSA the other to my pension, these are the exact words of the final paragraph of each letter.

“We have asked JOBSEEKERS ALLOWANCE to use code BR for this year, which means you will pay tax at 20% on your Jobseekers Allowance”.

“We have asked CANADA LIFE (who pay my monthly pension of £12.92p) to use code BR for this year, which means you will pay tax at 20% on your Canada Life annuity payroll income”.

There’s a bit more to this which may be relevant. I didn’t mention it before as I thought it might confuse matters not because I want to deceive.

I was made Bankrupt nine months ago and all has gone well (or as well as it can go being a bankrupt) but this had no effect on my previous claim for JSA. Also the Official Receiver made left my pension untouched by the BR proceedings.

Also I am a ‘self employed’ Carpenter (out of work due to a recurring injury, hence my periods of unemployment) which means I normally pay tax at 20% on all my earnings anyway.

But again this had no effect on my previous claim for JSA and shouyld have no effect on any monthly payment.

JC9297

My partner received a BR notification last week relating to his previous job which he left last June, on phoning the tax office they said this was a known problem (people being sent incorrect codes), particularly affecting people who have changed jobs. You should contact the tax office to query it.

This was in todays Daily Mail;
http://www.dailymail.co.uk/news/article-1245975/Tax-code-errors-cost-huge-number-people-1-000-year-financial-group-warns.html

wuckfit

I thought that BR was an emergency tax code.

Mudd14

No 647L X which is the standard tax free allowance on a non cumlative basis is the emergency tax code.

floss2

Don't forget you will have to have an income of over £124 a week to start to pay tax.

How much is your JSA? And your pension? And any other income?

I suggest that you keep all your paperwork safe over the next tax year as you may need to calculate whether you are due a refund come April 2011.

wuckfit

just been on the direct gov website.
BR stands for 'Basic Rate' which is 20%
I've been put on that in the past when a previous employer was a bit lax in posting out my P45, which is why I thought it was an emergency code
647L is the standard code for most people, and is also used for emergency codes, according to HMRC.

tigtag02

This question has been answered for you on your original thread!