im not sure if my tax codes are right or not

jem16

dithedancer wrote: »

im with sky talk.

Check here for a non 0845 number for HMRC.

http://www.saynoto0870.com/

dithedancer

there is nothing omitted, that is all i earn. by the way there is a number for skype calls. ive tried the land line again and was on 20 minutes will try again in the morning early on.

dithedancer

still not got through.
anyway ive found my tax coding notice for year 2010-2011 which says is k57. this is how they work it out.

MY PERSONAL ALLOWANCE £6475
FLAT RATE JOB EXPENSES +£100
______
£6575

STATE PENSION/STATE BENEFITS -£7157
_______
TAX DUE ON -£582

they turn £-582 into tax code k57 to send to my employer they should use the code each time i get paid. they say that they know i receive a state pension or another taxable state benefit and have estimated that i will receive £7157. they say that these are taxable but DWP cannot take off payments, so they have used some of my tax free amount to take care of the tax due on the pension/ benefit £7157.
tax is due on £582 by using k57 my employer will add this to income and tax as follows.
at 20% on £37400
at 40% on anything over £37400
does this seem correct.

my other letter from my husbands pension says
GROSS PENSION £266.23
TAX £53.20
OTHER DEDUCTIONS £0.00
NET PAYMENT £213.03
TAX CODE BR

i dont know if this helps or not. is it any clearer to anyone

jem16

dithedancer wrote: »

they know i receive a state pension or another taxable state benefit and have estimated that i will receive £7157. they say that these are taxable but DWP cannot take off payments, so they have used some of my tax free amount to take care of the tax due on the pension/ benefit £7157.

OK - you told us yesterday that you do not receive a state pension as yet as you are only 50.

Are you receiving another state benefit such as Widowed Parents' Allowance? If so that would account for the reduction in your tax code as this is taxable but is paid gross.

dithedancer

no not getting any other benefits only CTC and WTC. ive not had WPA since july 2008 when i took in a lodger for a few week and they took it off me saying that we were cohabiting we wasnt and he went when he was rehoused in september that year.

jem16

dithedancer wrote: »

no not getting any other benefits only CTC and WTC. ive not had WPA since july 2008 when i took in a lodger for a few week and they took it off me saying that we were cohabiting we wasnt and he went when he was rehoused in september that year.

CTC and WTC are not taxable benefits so would have no influence on your tax code.

It is possible that they have never removed the WPA deduction and you should be able to not only get it sorted out for this tax year but also claim a rebate back to July 2008 ( or at least Sept 2008) when you stopped getting it.

Keep trying - you should be due a rather large refund if you have no state benefit.

Cyan

Got a letter from HMRC. I just don't understand the letters. It's tells me I have a new tax code. But there's 2 letters in the envelope. One tells me I have a new tax code for where I work now, and the other tells me I have a new tax code for Job Seekers Allowance?? I signed on the summer after the PGCE finished in 2009, and told them all along it was only until 1st Sept 2009 when I started my job. Not signed on since - so don't understand at all??

dithedancer

hi again, a friends accountant is dealing with the tax from my last post as a favour. just to lt you all know that i have received my tax notice for 2011-12. my code as now changed to 9L here is how they work it out.

PERSONAL ALLOWANCE £7475
JOB EXPENSES +£100
______
£7575

STATE PENSION/STATE BENEFITS -£7483
_______
£92

my question is why as my code changed and is it for the better or worse?. i shall take the letter to the man doing my tax, but i wont be seeing him for a little while, but im curious to know what to expect.

molerat

It has got better but only due to the personal allowance increasing. Yes take it to him but you need to contact HMRC to get it sorted, try early morning or on a Saturday.

Mikeyorks

dithedancer wrote: »

STATE PENSION/STATE BENEFITS -£7483
_______

As previous post - yes it is marginally better. But purely because the basic personal allowance is increasing to £7475 (from £6475) from April.

The deductions from your Code (as quote above) have been increased precisely in line with the basic pension uprating (4.6%) from April. Which suggests HMRC are being advised by DWP - via their uprating service - that you are in receipt of State pension or equivalent.

Phone your accountant friend and just give him the basic details .... no need of the letter. It's the same problem to be solved as we'd identified earlier.