K tax code

anniemo60

Hello, Thanks for the replies.

I did have a lump sum from my NHS pension as part of the retirement. It was for £18,557.53, nowhere near £30,000.

I also had notification in 2005-2006 tax statement, that I had underpaid £286.18 from previously recieving my allowance twice according to the tax man.
They were going to deal with this in the 2006-7 tax calculation so I assume that was done.
And.... yes my state pension is £7865 as you say

Mikeyorks

anniemo60 wrote: »

And.... yes my state pension is £7865 as you say

Personal allowance £6475 minus State Pension of £7865 = Minus £1390 which translates to a minus code of K139 (suspect the State Pension is a pound or so less than £7865 ..... to give rise to K138??)

Which means the State Pension absorbs all your personal allowance (and more) ...... leaving you paying 20% on the whole of your NHS pension. In which case Code BR on the private pension (all taxed at 20%) is correct.

No need of an accountant?

casey_junior

Well done Mikeyorks, very well explained.