How to get a tax rebate inc Tax Code Checker

g3rsm

I have a company pension and a state pension and am subject to tax. The state pension is not taxed at source and therefore is deducted from my personal allowance to produce a tax code that allows the tax to be claimed back via my company pension. The checker does not seem to take this into account and therefore indicates that my personal allowance is out by the amount of my state pension.

Leslie45

I've just discovered the "Income Tax Checker" on the MSE website and having input my personal details, I'm confused by the result.

I input my Gross Taxable Income as £22334 for the current tax year and my age 65.
The calculation came up with a Tax Free Allowance of £9490 giving me a Net Taxable Income of £12844. OK so far.
The next figure I just don't understand. It calculates the Tax due at £1872 which is a Tax Rate of only 14.57%. Surely this should be 20% making the Tax Due figure £2569?
Has anyone got any thoughts?

Geeman18

downshifter wrote: »

Could anyone advise me please, I've tried the tax checker but don't understand the results. Have just been looking at this year for now, once I understand I'll go back. This year I have 3 jobs, one shows tax code as 124T, one BR and one 180T, I also have an nhs pension whose tax code is 342L. Am under 60. How would I go about checking if these are correct? Forgot to add I also have a zero hours contract whose code is BR, presumably this doesn;t make any difference, I've never actually done any work under this contract.

Up until this January I was also self employed and did a tax return each year, so I suppose that made sure that I was paying the correct amount, and will presumably have to do another return for 2010/11 which might also sort it all out, however I'd like to know now, particularly if I have to pay anything back in 2010/11.

Thanks

As you were still self-employed up to January 2010 you will be expected to complete a tax return for the year to 5th April 2010, the dealine for which is 31st January 2011.

The details of your earnings from your three employments and any tax deducted would need to be included on this return. Any overpayment of tax would be refunded once the return is submitted.

Geeman18

wildthing01 wrote: »

not sure if this is the right place to ask a question, but i have a query I'm wondering if anyone can shed light on.

i have a lease car through my employer - as i am an essential car user (stated in my contract), my employer runs a lease car scheme (i work in the public sector).

i pay towards the cost of the lease, as i have the car available for my personal use, and my employer pays the rest (as i use it for work purposes).

according to the tax office, this counts as a 'benefit' and they refer to it as a 'company car' (even though it's not part of my remuneration package - i pay for it), and so it reduces my tax allowance.

is anyone able to explain to me why this is? i have tried the tax office, but they just bamboozle me with tax jargon, so I'm none the wiser! doesn't this in effect mean I'm paying tax twice, as i pay out for the lease of it from my pay packet (presumably after tax), and then have my tax code reduced as well.

(plus, to add insult to injury, my petrol costs me way more than i get back in petrol allowance, so i'm out of pocket on my mileage expenses too, but that's a different issue!)

The company car benefit is calculated as a percentage of the market value when it was first purchased. From this is deducted any payments you make towards the car.

The percentage is based on the CO2 emissions of the car. For a car under 135 g/km this is 15%, but will increase for cars with a higher CO2 figure.

For example a car with a value of £20,000 the taxable benefit would be £3,000. From this you can deduct any payments made towards the car, say £100 per month, giving a revised taxable benefit of £1,800.

This would be taxed at your rate of tax (assume 20% basic rate), giving tax owed of £360. This would be deducted from your tax free personal allowance.

Assuming you get mileage reimbursed for business miles, you can claim tax relief if the amount you are paid per mile is less than HMRC allowances.

These are currently 40 pence for the first 10,000 miles and 25p for any miles above this.

For example, if you get paid 5000 miles @ 20 pence you can claim tax releif on the difference, being £1,000. This would be reimbursed at your rate of tax (assume 20%) which would be £200. This can done on a Form P87.

2010

g3rsm wrote: »

I have a company pension and a state pension and am subject to tax. The state pension is not taxed at source and therefore is deducted from my personal allowance to produce a tax code that allows the tax to be claimed back via my company pension. The checker does not seem to take this into account and therefore indicates that my personal allowance is out by the amount of my state pension.

DITTO, I`m exactly the same although underneath it does explain that this may be the cause of the anomaly.

Find YOUR tax office number.
http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=1

No matter what town or postcode you enter at the bottom of the page
it gives you the same phone number

---

08453000627

System

Leslie45 wrote: »

I've just discovered the "Income Tax Checker" on the MSE website and having input my personal details, I'm confused by the result.

I input my Gross Taxable Income as £22334 for the current tax year and my age 65.
The calculation came up with a Tax Free Allowance of £9490 giving me a Net Taxable Income of £12844. OK so far.
The next figure I just don't understand. It calculates the Tax due at £1872 which is a Tax Rate of only 14.57%. Surely this should be 20% making the Tax Due figure £2569?
Has anyone got any thoughts?

Not sure you posted this topic in the correct thread, your question is about the "Income Tax Checker" when this thread is about the "Tax Code Checker"
but...

To answer your question, I assume you must have ticked the "Married" box. The tax due has been calculated using the married couples allowance of £6965 which gives relief at 10% so £696.50 has been deducted from the tax due.
i.e.
£22,334 - £9,490 = £12,844 @ 20% = £2,568
£2,568 - £696 = £1,872 Tax Paid

So, if your circumstances do not qualify you to receive the married couples allowance, then simply untick the "Married" box and recalculate.

Nats_uk

Mine says
Tax free allowance is %980-£5989
Based on ONLY the salary and age personal allowance would be £6475

There is a difference of £495

Does that mean underpaid or overpaid?

Leslie45

BAA1 wrote: »

So, if your circumstances do not qualify you to receive the married couples allowance, then simply untick the "Married" box and recalculate.

Thanks for this. I couldn't find a thread specifically about the "Tax Code Checker" and this was the closest I could get.
I now see exactly what you mean. In my opinion, this is a flaw in the system, as you are invited to tick the box simply if you are married. There is no mention about ticking the box only if you qualify for the married allowance.

System

Nats_uk wrote: »

Mine says
Tax free allowance is %980-£5989
Based on ONLY the salary and age personal allowance would be £6475

There is a difference of £495

Does that mean underpaid or overpaid?

It doesn't mean either...

It tells you that the amount you can earn before paying any tax is £495 less than the "standard" allowance.

So, it is telling you to have a look at your P2 coding notice to see why your tax code is not the "standard" 647L code.

If you have not received a P2 coding notice, then you may need to phone HMRC to check the tax code that your employer should be using.

sonnythecat

My oh's tax code is 28L. Is that a bit odd? He does have a company car but I thought it looked like a number was missing....