2012-3 coding for OAP

bobthesod

Just had a letter from HMRC giving me my new tax code as 1050P.

It also states to contact them if my total income will be over 25400 for the year.

If it is does my code go up o down?

Mikeyorks

It goes down ........ by £1 for every £2 you exceed the £25400.

If your income does exceed that - and you don't tell them - you will be on here complaining next year that you've just been required to pay a largish underpayment in a lump sum! That's how it works

jem16

Your code will go down by £1 for every £2 you are over the limit.

EDIT - beaten to it by Mike.

xylophone

http://www.hmrc.gov.uk/pensioners/paying-retire.htm
http://www.direct.gov.uk/en/Nl1/Newsroom/DG_200224
For information.

bobthesod

Thanks,

I thought i might be 'done'.Will advise them as i am always upfront on tax issues

zygurat789

Mikeyorks wrote: »

It goes down ........ by £1 for every £2 you exceed the £25400.


If your income does exceed that - and you don't tell them - you will be on here complaining next year that you've just been required to pay a largish underpayment in a lump sum! That's how it works

But only until your income reaches £29290 when your personal allowance has been reduced to £8105. And then of course when your income reaches £100,000...........

System

Are you receiving a state pension? If so I would expect your code to be less than that as the state pension is taxable but can't be taxed at source and so is usually dealt with via a deduction in the code applied to your main source of income.

ceeforcat

Presumably you have just turned 65 and are entitled to age allowance. If you telephone them now, as I just have, and get through all the menus, you should make contact with a human by the time you are 66.

jem16

ceeforcat wrote: »

Presumably you have just turned 65 and are entitled to age allowance.

Perhaps not yet 65 but in the tax year in which the OP turns 65. If that is the case he may not yet be in receipt of a state pension.

ceeforcat

Good point jem16. I must admit I had never before considered the increased likelihood of unused allowances in the year that one turns 65 as a result of the receipt of age allowances- the benefit of which, in previous years, was usually outweighed somewhat by the receipt of state pensionat the same time.

Mikeyorks

I wonder how long it will be before the age band at which the age related PA becomes available - starts to advance to keep in step with the age at which the State Pension becomes available?