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HMRC mistake with my tax code

2»

Comments

  • The code for his salary was K88 - he has a relatively low paid job (basic rate was £200 pw) and a private pension which he had a different code for. He claimed the state pension.
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    We would need to know the weekly rate of his state and works pensions in order to advise properly.
    £705,000 raised by client groups in the past 18 mths :beer:
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    The K code is basically an addition of notional income to the basic salary, this is how car BIK is taxed but there are no benefits. The state pension is taxable but there is no machinery for deducting this tax so the personal allowance is reduced by the amount of state pension received but since your dad is over 65 his PA would be 9490 for this year and his state pension would probably be £5-£6K son this would not give rise to a K code
    HMRC should have sent a letter telling him why the code is what it is and they are sending them out now try and get hold of this or he should ring his local tax office and ask why because from what you have told us there may be a refund due
    The only thing that is constant is change.
  • Private pension was £174pm and another was £35pm before tax. Full state pension of £145pw.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    So salary say £11K State pension £7540 Private pensions £2508 Total £21 048.
    Personal Allownace 2009/2010...................................................... 9,490
    taxable.................................................................................... 11,558
    Tax at 20%..............................................................................2,311.60
    But if HMRC thought his income would be over £22,900 they would have restricted the codes but not to the extent of two K codes. Are you sure your Dad has told you of all his income, mine doesn't tell me and I'm equally secretive?
    The only way you can progress now is by contacting HMRC .
    The only thing that is constant is change.
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