New tax code, confused!

joffy666

I stopped claiming incapacity benefit May 2010 and started working 20 hours a week.
Today I got a letter with my new tax code for 2011-2012 and in the section, "here is how we worked it out", it says; taxable incapacity benefit -£5261. (see note 2) which states; We have included an estimate of the benefit you are likely to receive this year.

I'm still working and won't be claiming any incapacity benefits, so is that wrong?

ceeforcat

Yep - tell them asap. Otherwise, it will be operated from 6th April by your employer. HMRC are going on latest information here.

System

Before you call them find out how much taxable IB you actually received in the 10/11 tax year up to May 2010. Could be that you have had a deduction in your code all this year which would mean you have overpaid tax already.

joffy666

All sorted, they hadn't got my P45 details from when I started work, basically the job centre hadn't told them.

Thanks!