2 x tax codes

McKneff

My husband receives state pension.

He also received 1 private pension of around £1k per year and another one of £120 per year both with CIS

He has received 2 notices of tax coding today

1 from Manchester saying his code is now 129T replaces 49T

1 from Cardiff saying his code is now 92T replaces 99P

Both dated the same date 30th March 2010

Both stating that his tax allowance if £9490 per year.

Something wrong surely but what? No one has 2 tax codes do they?

Any advice appreciated.

alwaysonthego_2

MOVING THREADS FOR BETTER RESPONSES


Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

System

Yes you can have 2 or more codes depending on how many PAYE sources of income you have. However only 1 source would have the £9490 personal allowance set against them.
Are both codes for the same tax year?
If they are then your husband needs to contact HMRC to query why they both have the personal allowance and whether they refer to each CIS source of if the 2 codes are for the same CIS source. HMRC should be able to tell just by checking the pension reference number on each code that was issued.

McKneff

thanks pam, will give them a ring.

McKneff

alwaysonthego wrote: »

MOVING THREADS FOR BETTER RESPONSES


Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"][EMAIL="abuse@moneysavingexpert.com."]abuse@moneysavingexpert.com[/email][/EMAIL].

Thanks AOTG, but where have you moved it to please.

System

You're on the Cutting Tax Board now

You may have difficulty getting through now so it might be better to make an appointment at your local HMRC enquiry centre to try to get it sorted.

http://www.hmrc.gov.uk/enq/main.htm

jem16

McKneff wrote: »

My husband receives state pension.

He also received 1 private pension of around £1k per year and another one of £120 per year both with CIS

He has received 2 notices of tax coding today

1 from Manchester saying his code is now 129T replaces 49T

1 from Cardiff saying his code is now 92T replaces 99P

With 2 or more incomes, the main tax code is usually applied to the highest income and BR (Basic Rate) or DO (higher rate) applied to others.

However it is also perfectly possible to split the allowances over the different incomes and this is often where you will see a T code being applied. It usually happens when the main income falls below the personal allowance and the allowances are not being used in full.

Both codes plus the state pension would then add up to £9490. So in reverse £9490 minus £1295 (192T) equals £7565 minus £925 (92T) equals £6640.

Is £6640 the amount of his state pension - approx £127.70pw?

McKneff

yes, that figure sounds about right, basic and serps.

jem16

McKneff wrote: »

yes, that figure sounds about right, basic and serps.

Well if his 2 pension payments from CIS are paid separately I can't see a problem with the tax codes he's been given.

trevormax

jem16 wrote: »

With 2 or more incomes, the main tax code is usually applied to the highest income and BR (Basic Rate) or DO (higher rate) applied to others.

However it is also perfectly possible to split the allowances over the different incomes and this is often where you will see a T code being applied. It usually happens when the main income falls below the personal allowance and the allowances are not being used in full.

Both codes plus the state pension would then add up to £9490. So in reverse £9490 minus £1295 (192T) equals £7565 minus £925 (92T) equals £6640.

Is £6640 the amount of his state pension - approx £127.70pw?

This seems about right. If memory serves, the Cardiff office are the ones that deal with most (or all) of the people on state pension. State pension can not be taxed at source so HMRC just reduce your PA by the amount of state pension you are expected to get.

Then, any unused PA is applied to any other sources of income such as private pensions. Usually the state pension is classed as the main source of income (or GCD record in the old COP system) as you are expected to have this till the day you die whereas any other earned income will likely stop at some point.

The code from Manchester is possibly both of your partners private pensions lumped together. This code is to cover both of the private pensions as closely as possible and not leave any unused PA. The code from Cardiff is likely the remaining PA after the state pension and the private pensions have been deducted.

McKneff

Thanks all, bit panicked because we really have never been inthis position so
didnt really understand.
Just thought that everyone had only one tax code per year. Which is what has happened to us for the last 50 years lol.

The other thing we found strange was that one code came from Manchester and the other from Caridff, even though both pensions are with CIS in Manchester so thanks for explaining that.
And thanks to everyone who took the time to respond.