Personal Tax Allowances for 2011-2012

liamfindlay1

Can anyone help me work out how much tax I will have to pay for the above years. I am 64 yrs old, still working and have frozen my state pension.

My income:
Widows pension £35.00 per month (I am not taxed on this income)
My salary £800.00 per month (I am taxed on this income)

I am not sure what my code is!

Widows pension from 30 years ago, and still getting even though I remarried 26 years ago.

Thanks
Sandy

System

liamfindlay1 wrote: »

Can anyone help me work out how much tax I will have to pay for the above years. I am 64 yrs old, still working and have frozen my state pension.

My income:
Widows pension £35.00 per month (I am not taxed on this income)
My salary £800.00 per month (I am taxed on this income)

I am not sure what my code is!

Widows pension from 30 years ago, and still getting even though I remarried 26 years ago.

Thanks
Sandy

Hi Sandy

How long have you been employed in the job paying £800 per month ?

If you have been working there for more than 12 months then you should have received a P60 from your employer.
The P60 will show what tax code you have been on.

The standard personal allowance for under 65s for the 2010-11 tax year is £6475 (Code 647L) This increases to £7475 (Code 747L) for the 2011-12 tax year.

So, if you have earned £800 per month for a period of more than 8 months, then you should probably have been paying tax on your widows pension too. It is possible that HMRC could have adjusted your tax code to pay the tax on the widows pension through PAYE on your job, assuming that HMRC are aware that you have two sources of income ?

For a total income of £835 per month = £10,020 per year
Take off the personal allowance 10020 - 7475 = 2545 taxable @ 20% = £509 tax to pay in 2011-12

Note, this personal allowance will increase to £9940 if you reach the age of 65 during the 2011-12 tax year (Birthdate between 6 April 2011 - 5 April 2012)
That would make the calculation as 10020 - 9940 = 80 taxable @ 20% = £16 tax to pay in 2011-12

If you have had the two sources of income for more than 8 months, then you may want to post more details about your earnings over the past few years and what tax code is shown on any P60s you can find. Then others on here can advise what tax you should have paid in past years too.

liamfindlay1

I have been earning the £800.00 for 8 years. I never get a P60 as she is just one person employing me to look after her children. I am sure I remember getting something from the Tax Office but have no idea where I put it.

liamfindlay1

Sorry forgot to mention, they do take into account that I work and put the tax on my job & not the pension.

System

liamfindlay1 wrote: »

I have been earning the £800.00 for 8 years. I never get a P60 as she is just one person employing me to look after her children. I am sure I remember getting something from the Tax Office but have no idea where I put it.

liamfindlay1 wrote: »

Sorry forgot to mention, they do take into account that I work and put the tax on my job & not the pension.

Okay, I'm not sure how your situation works with getting the tax paid by your employer, as you say: "she is just one person employing me to look after her children" I'm assuming you are not registered as self employed and you do not complete a self assessment tax return.
But whatever, the tax calculation is still as per my earlier post. (Hopefully the £16 figure )

I'm sure someone else will be able to clear up what happens in your type of situation when no P60 is issued, there must be some sort of special arrangement with HMRC I would guess.

P.S.
If your 65th birthday is during the 2011-12 tax year, it may be worth you checking that HMRC know your birthdate, otherwise you may not get the improved personal allowance.

dithedancer

tell me if im wrong but wouldnt the widows pension be lost if you have remarried. just thought i'd say in case DWP claw it back