Tax Code

Cambridgegirl

My DH has a small private pension (£1440 per annum) but is also self-employed with an annual income of abour £30K. We have received a notification of his tax code for 2010/11 which has applied all of his personal allowance to this small pension. Prior to this it was all taxed at source by the provider.

Am I correct in thinking that unless we get this sorted out he will have no personal allowance to use against his self-employed income, or will our accounant be able to use the balance of the tax code against his income.

Is it also possible to say to the HMRC that we would prefer that the private pension was all taxed at source as it was previously.

If any one knows the answer to this or can advise would be grateful!

fengirl_2

As he hasn't used all his personal allowances up at his pension, the blance will be available to set against his profit. However, if he wants all his PA's against his profit, then he just needs to tell the tax office this.

Cambridgegirl

Hi Fen Girl
(You must live in the same area as me)!

Anyway thanks for clarifying that.:T