over 75 tax code

jimmo

That may be the correct standard procedure and if it is then no wonder people get confused about Income Tax.
aloise, if we ignore the Code Number issue for the moment the correct way to estimate your husband's tax liability for 2011/12 is to calculate the tax due as if he was not entitled to the Married Couples Allowance and then deduct the relief available in respect of the Married Couples Allowance. Using your own figures we have
Income
State Pension £6,915
Council Pension £107
Works pension £3,480
Total Income £10,502
Deduct Allowances
Personal Age Allowance 10,090
Taxable Income (10,502 - 10,090) £412
Tax at 20% = £82.40
Relief available in respect of Married Couples Allowance
7295 at 10% = £729.50.
As the relief available in respect of Married Couples Allowance is greater than the tax due your husband will have nothing to pay.
As you can see, there is quite a considerable safety margin there. The unused relief in respect of Married Couples Allowance is (729.50 - 82.40) £647.10. At the 20% rate that means that your husband could have an additional £3,235 income and still be not liable to tax.
Coming back to the code number issued I, personally, believe that it is technically incorrect but in your own circumstances, with a nil tax liability, does it really matter?
As it happens, my wife gets State Pension and in her code for 2011/12 HMRC have underestimated her State Pension by more than £1,000. With some knowledge of the system I am happy with the fact that, from next month, she will start building up an interest free loan from HMRC.
My guess is that you are worrying about nothing but my fear is that you will continue worrying.

jem16

jimmo wrote: »

Coming back to the code number issued I, personally, believe that it is technically incorrect

Just out of curiosity what would you believe is a correct code for this?