Tax code very low

Niggles

If it was issued in February then very likely it is for 2010-11, so as scoobs02 says you may have to complete a reclaim form R40 for 2009-10.
However if you can find a coding notice for 2009-10 and it is similar to the one you have then she has been taxed correctly and no rebate is due. (By similar I mean SP and PA for earlier year look correct)

Martyn_H

I think the easiest thing is to write to the taxman and get a reply in black and white.

jem16

Martyn_H wrote: »

I think the easiest thing is to write to the taxman and get a reply in black and white.

It may be weeks before you get a reply from HMRC.

Your mum's tax code is correct - there is no doubt over that and HMRC have confirmed to you verbally that it is.

What is simply needed is some info from you/your mum as to what codes have been used previously and for how long.

You say your mum was on the emergency code - exactly what code was used and how long was she on that code?

Have your mother's circumstances changed over this tax year - i.e. did she only start to receive her late husband's pension this tax year?

Martyn_H

Mum was on an emergency code of 647L, presumably since dad died in Feb 2009. When I wrote to dad's old firm in Aug 2009, they told me that they still hadn't been informed what the proper code should be.

I haven't seen the new coding letter from HMRC, but I know it was dated 20 Jan 2010. I'll ask her for the letter today when I see her.

jem16

Martyn_H wrote: »

Mum was on an emergency code of 647L, presumably since dad died in Feb 2009. When I wrote to dad's old firm in Aug 2009, they told me that they still hadn't been informed what the proper code should be.

OK. Bad news is that your mum won't receive any tax rebate - she will actually owe tax over 09/10 tax year if she has been on 647L for the whole of this tax year and receiving the state pension and company pension you have stated. With her income including the state pension she should have been receiving tax-free allowances of £2256 and she has been receiving tax-free allowances of £6475 instead.

I haven't seen the new coding letter from HMRC, but I know it was dated 20 Jan 2010. I'll ask her for the letter today when I see her.

It's really crucial to know if it's now being applied to the compnay pension. I would have thought being dated 20th Jan it should already be which would be better for your mum than a big tax bill after April 6th.

Martyn_H

jem16

I realised rather late than she will owe HMRC money, rather than the opposite. I've seen the letter and it's being applied to the company pension.

jem16

Martyn_H wrote: »

I've seen the letter and it's being applied to the company pension.

At least the payments will have been spread over 2, possibly 3 months until the end of this tax year. At the moment she will be paying much more tax than usual via the company pension.

After April 6th the tax taken via her company pension will be normal around £60pm.

Martyn_H

Thank you all for your extremely helpful replies.