Backdate code or not

CLAPTON

jem16 wrote: »

Wouldn't you also need the relevant figures as well though?

well it all depends upon what question the OP asked

mind you I rarely answer the OP's question,
I try to answer the question they really intended to ask
but my efforts often go unrecognised

Johng100

CLAPTON wrote: »

well it all depends upon what question the OP asked

mind you I rarely answer the OP's question,
I try to answer the question they really intended to ask
but my efforts often go unrecognised

Hi
Sorry to have caused any friction
The codes I received in october on P2s are 125P for company pension
and BR for annuity there is nothing I can see which refers to M1 or Wk1
Though I have just looked at my P60 from company it says my final tax code is 125P M1

CLAPTON

Johng100 wrote: »

Hi
Sorry to have caused any friction
The codes I received in october on P2s are 125P for company pension
and BR for annuity there is nothing I can see which refers to M1 or Wk1
Though I have just looked at my P60 from company it says my final tax code is 125P M1

Your tax code for October onwards part of 2010-11 was a non cumulative code.
The fact that your October P2 said 125P and didn't say M1 merely shows the breaktaking incompetence of HMRC.

The fact that it was not cumulative is probably hidden on the second side of the P2 document which is a narrative description of the situation and doesn't used words like 'M1' or 'non cumulative'.


Normally this would mean you have paid too little tax which will be recovered in 2011-12.
However without knowing your full details (especially whether your total income is under or over 28,000 and so whether you are eligible for the over 65 age related tax allowance) it's imposssible to be clear about whether you have paid too much or too little tax.

And you haven't caused any friction; it's just that HMRC makes pensioner tax even more taxing that it need be.

jem16

Johng100 wrote: »

The codes I received in october on P2s are 125P for company pension and BR for annuity there is nothing I can see which refers to M1 or Wk1Though I have just looked at my P60 from company it says my final tax code is 125P M1

I assume when you worked out your entitlement to a £400 rebate you added up the company pension, state pension, annuity and any savings/dividend income then took off the £9490 personal allowance?

CLAPTON wrote: »

And you haven't caused any friction; it's just that HMRC makes pensioner tax even more taxing that it need be.

No friction between Clapton and myself. Clapton knows his stuff about tax and I can see now he was probably more interested in the loss of some increased personal allowance.

Johng100

jem16 wrote: »

I assume when you worked out your entitlement to a £400 rebate you added up the company pension, state pension, annuity and any savings/dividend income then took off the £9490 personal allowance?

Correct
Thanks to both of you

jem16

Johng100 wrote: »

Correct

So your total income is not more than £22,900 which would cause you to lose some of that increased personal allowance?

Johng100

jem16 wrote: »

So your total income is not more than £22,900 which would cause you to lose some of that increased personal allowance?

Hi
No my income is nowhere near that

jem16

Johng100 wrote: »

Hi
No my income is nowhere near that

You should be fine with your calculations then. Just take £9490 off your total taxable income and then take 20% tax off that and compare with tax paid.

Johng100

jem16 wrote: »

You should be fine with your calculations then. Just take £9490 off your total taxable income and then take 20% tax off that and compare with tax paid.

Hi
Thanks that is what I have done
However I am worried as your opinions seem to suggest that the code would result in an underpayment of tax

jem16

Johng100 wrote: »

However I am worried as your opinions seem to suggest that the code would result in an underpayment of tax

It could but it may not.

You were entitled to an increased personal allowance from April until your state pension started in October but you didn't receive this. If the tax due on amount that you received in state pension was less than the amount you would be due back in tax because of the extra allowances then all would be fine. However this doesn't always happen.

The only way we could reassure you was if you posted the exact figures.