New Tax Code, is it correct?

UncleZen

Ive just received a new tax code for 2012/13, how can I calculate if this is correct? I pay into a private pension out of my take home pay, Im a 40% tax payer, so I want to work out if the tax relief stated on the statement is correct.

Its the calcs for the high rate tax relief on the pension contributions I cant get my head around.

Any good web based calculators? Or hints? Or a guide on how to work out the pension relief calc?

Thanks

BoGoF

The code should give a breakdown of much personal pension contributions they have based it on (in the notes)?

Give us details of how the code is made up....

UncleZen

Personal allowance: 8105
Personal Pension relief: 1584
Total: 9689
So the question is how did they calculate the 1584?

ceeforcat

How much pension contributions do you pay net. Would it be £2534 per annum by any chance?

UncleZen

No, £635 / month out of take-home pay, the government add 20% via the Pension company

ceeforcat

Well I do not understand the coding adjustment either.

You pay £635 per month which is £7620 per annum. As you say the Gov. gross this up to £9525. As you are HR, you are due additionl tax relief of £1905. The code number, to reflect this, should grant you and additional £4762 of allowances (£4762@40% = £1905)

BoGoF

HMRC will base it on the last known figure to them. If it has increased and you haven't told them it may well be based on incorrect figures.

UncleZen

My pension contribution figures have been stable for several years.
I'll have to phone them and get them to explain this to me I think.