Tax code do not knwo what it means

teajug

i eceived my tax code today and it say that it is P8 what does that mean I never had a code like that before, I am over 65 would that have anything to do with it.

ceeforcat

8P by any chance as opposed to P8? This means that, on the source of income to which this is applied, the first 89 pounds in the YEAR is free of tax with the remainder taxed. It would appear that your personal allowance has been reduced by your state pension leaving only 89 of this allowance remaining. Put up the details on your P2 cosing notice if you want further explanation.

teajug

It say TAX Code for the year 6 April 2011 to 5 April 2012 is 8P


It gives a beakdown and my perosnal allowace is £9940
Flat Rate Job expenses is +£60 do not know what this means.

then it taks my earnings and state pension -£9917
and a tax free amount of £84

I do not know what the +£60 means and I am not working at present due to ill health.

Will I be taxed on my state pension. :eek:

Mikeyorks

The State Pension is paid gross ..... but it is certainly taxable income. So where you have other income (private pension or job) HMRC will restrict your personal allowance in order to recover the tax on the pension. If no other income - you'll be required to file an SA Return each year .... if your pension(s) exceed your personal allowance.

The £60 is a flat rate allowance you will likely have claimed? It will be for laundering of uniform / tools allowance or very similar?

The £9940 is correct for your age (assuming your total income next year will be less than £24k). But you need to check (Pensions Service will send you a statement early March) that the £9917 deduction is the value of your State Pension to Apr 2012.

The Code 8P is then correct based on everything above.

teajug

thanks for reply, does it mean that I can earn up to £83 a week tax free.:o

p00hsticks

teajug wrote: »

thanks for reply, does it mean that I can earn up to £83 a week tax free.:o

Unfortunately not - the first £83 you earn during the YEAR is tax free - you'll pay tax on the rest. Basically all your tax allowance is being used up on your pension.

teajug

Thanks for reply, what were the Lib/con going on about when they said that they were taking low paid people of paying tax. How low has the low paid people salary got to be before the their income is tax free.:o

System

teajug wrote: »

It say TAX Code for the year 6 April 2011 to 5 April 2012 is 8P


It gives a beakdown and my perosnal allowace is £9940
Flat Rate Job expenses is +£60 do not know what this means.

then it taks my earnings and state pension -£9917
and a tax free amount of £84

I do not know what the +£60 means and I am not working at present due to ill health.

Will I be taxed on my state pension. :eek:

If your current situation is due to continue for a while longer, then have you phoned HMRC to inform them of your current status (Not working due to ill health) ?

I assume you will already have completed a P161 - Pension Coding form when you reached the state pension age of 65.

Since you are not working, I assume that you will not be receiving the "Flat Rate Job expenses of +£60" - you need to inform HMRC of this, so that your tax code can be corrected. You should find a relevant phone number on your P2 Coding Notice.

One other thing I should mention, I assume you have not yet reached the age of 75 ? (The personal allowance is improved for people aged 75 and over)

System

teajug wrote: »

Thanks for reply, what were the Lib/con going on about when they said that they were taking low paid people of paying tax. How low has the low paid people salary got to be before the their income is tax free.:o

Just to clarify...

Your state pension of £9917 is below your personal allowance (£9940) which means that you are not currently paying any tax on that state pension income.

If you also have income from another source (like sick pay or a company / private pension), then the first £84 of that 2nd income will be tax free but then you pay tax on anything above that.

So, you only start paying tax when your total income exceeds the £9940

teajug

Thanks for the helpful reply, which has explained everything to me regarding my 8P Notice for 2011-12. The £60 it says on the back of the form say the HM Revenue has agreed with the union that £60 is the amount I am like to have paid for doing this job. You do no thave to be a member to the union to get it.

I think I am still in the useless union but will check, this usless union turned a blind eye to disability discrimination. (but that is for the employment thread)

I requested a break from work to enable to get back into good health however I was transferred to another floor in the store and had an accident there and had to take time off work the next day I got a call from a manager in the store saying that my break has been approved and would take effect from the end of the month. I had sent in certificates regarding the injury I had but not sure if I was paid sick leave or not as the company did not send me my last payslip.