help for mum

pookie5488

IHi all hope i am posting in the right place. My dad passed away last year and my mum has continued to work in the same part time job doing the same hours. However she is now paying eighty pounds a month tax when she only paid twenty whilst dad was still alive. She also gets a pension from dads work which is taxed atsource and a bereavement allowance. Are these two payments the reason her tax iability is now higher?

CLAPTON

impossible to say without knowing the full details
you need to post up the figures for each income and what the tax codes are

Annisele

As Clapton says, impossible to say without figures.

In principle, if she now receives more money then she will be paying more tax. HMRC publishes some information here.

Basically, everybody has a "personal allowance" (possibly £6,475 in her case, but equally possibly not). Any income you receive below that allowance isn't taxed, but anything that you receive above the allowance is.

The important thing is that the personal allowance is per person, not per job or per pension or per income source. So, it is quite possible that the other income she receives pushes her income up enough so that £80 a month tax is right. It is also possible that she's on some sort of emergency tax code, or there's some error somewhere meaning she's paying more than she needs to.

As Clapton says, if you post figures and her tax code (which should be on her payslip) people will be able to help more.

pookie5488

Many thanks will tryto get figures tomorrow. I do know that that she was originally on a 647l tax code then dad died and he code was changed to something like 347wl .

Mikeyorks

pookie5488 wrote: »

I do know that that she was originally on a 647l tax code then dad died and he code was changed to something like 347wl .

So something - likely the bereavement allowance - is reducing the personal allowances by around £3000. Which, in turn, means she will be paying an extra (£3000 @ 20% £600pa on her earned income. Which broadly ties to the figures in your initial post.

But it's important to look at the income position overall where someone is paying the tax on a pension / allowance via the Code number. As you need to view the twin income sources against the now aggregated tax deduction?

But post the figures - as requested - and that will clarify. It will also be helpful to confirm the inherited pension is being taxed on Code 'BR' ...... as that will keep her straight (provided under 65).

ceeforcat

How much widow's pension does she receive?

pookie5488

Hi got some figures now. Originally tax code 647l paying 21.20 tax code changed to 237lw1 and tax now 84.20
pension taxed as br. Just unsure why tax code changed is it because of bereavement allowance?

pookie5488

Hi got some figures now. Originally tax code 647l paying 21.20 tax code changed to 237lw1 and tax now 84.20
pension taxed as br. Just unsure why tax code changed is it because of bereavement allowance?

CLAPTON

if your mother is about 52/3 then she would get about 78 per week breavement allowance so about £77 per week so that would be about £4,000 per annum
which would reduce the tax allowance form 6475 to about 2475 which is broadly about right
the W1 code is to smooth out the reduction in her income from the job

pookie5488

Oh thank you that makes sense but why does a benefit like tax credits not have any effect on your tax code then?

ceeforcat

Tax credits are not taxable. Bereavement allowance is but there is no mechanism to collect the tax other than by increasing the tax deducted from other income.