Tax Code with Company Pension

Blitzwing85

Hi

Just been reading about the overpayment of tax and was curious whether I have been doing so as i've often thought it anyway.

My tax code is 647L, Age 25, Income £26,000.

Haven't got a payslip on me but will check tax amounts tonight and list them.

My question is more to do with the company pension i receive and whether this would mean I get a lower tax allowance. (although if it does, it is most likely counter-productive in that case as it's a fairly poor company pension...)

2.5% of my wage goes into the pension, and my company puts in 2.5% too. From 2003-2010 it was a standard pension but has since changed to a SMART pension which if i remember rightly means it no longer links in with your tax and is totally seperate.
(i know the amount deducted from my pay has went down £10 a month since but I still get the same amount into the pension)



EDIT: adding tax details after i hunted out some pay slips.

Any advice appretiated as these things drive me mad. I've had extensive phone calls with tax office before regarding a bonus!

02/2009 - TAX CODE: 603L
BASIC - 2053.17
TAX - 310.00
PENSION - 41.06

05/2009: - TAX CODE: 647L
BASIC - 2053.17
TAX - 295.40
PENSION - 41.06

02/10: - TAX CODE: 647L
BASIC - 2084.00
TAX - 308.80
PENSION - 41.68

It's a similar story now only with the Smart pension deduction coming off before the tax is deducted.



Whether i'm paying too much or not it's confusing me. It seems in 2009 and earlier i had even less of a tax allowance. I've been in the same job since 2001 and nothing at all has changed.

Anyone shed any light on that from that info?

molerat

Your old pension payment was taken from gross pay and was not included in your taxable pay. With a smart pension the company pay all contributions and your pay is reduced accordingly meaning neither you or the company pay NI on that contribution. BTW your tax code should normally be 747L for this year, check your payslip.

Blitzwing85

molerat wrote: »

Your old pension payment was taken from gross pay and was not included in your taxable pay. With a smart pension the company pay all contributions and your pay is reduced accordingly meaning neither you or the company pay NI on that contribution. BTW your tax code should normally be 747L for this year, check your payslip.

Thanks for the reply.
So am I right in thinking that previously the tax code of 647L could be correct, but that since the change it should be 747L?

My tax code has always been 647L for as long as I can recall. I'll double check this later either way.

CLAPTON

Blitzwing85 wrote: »

Thanks for the reply.
So am I right in thinking that previously the tax code of 647L could be correct, but that since the change it should be 747L?

My tax code has always been 647L for as long as I can recall. I'll double check this later either way.

usually the tax free allowance changes every year ;

for this tax year we all get 7475 tax free corresponding to a tax code of 747L

last year (2010-11) the tax free allowance was 6475 corresponding to a tax code of 647L

un-usually the tax code for 2009-10 was also 647L (the circumstances were headline news for about 3 months )

prior to that (2008-9) the tax code was 603L

it is unrelated to the change in your pension situation

Blitzwing85

CLAPTON wrote: »

usually the tax free allowance changes every year ;

for this tax year we all get 7475 tax free corresponding to a tax code of 747L

last year (2010-11) the tax free allowance was 6475 corresponding to a tax code of 647L

un-usually the tax code for 2009-10 was also 647L (the circumstances were headline news for about 3 months )

prior to that (2008-9) the tax code was 603L

it is unrelated to the change in your pension situation

Ahhh ok well there you go. I've never took any notice so had no idea about that.
Still, should haved moved to 747L but i havent but wont be owed much in that case.
Ill take more notice of this in future!!

Thanks