Confused re Tax Codes

HarryS

Hi
I am hoping someone can help me in my quest to understand notices of coding I have received.

I receive state pension, private pension(wound up, paid via FAS) & AVCS(from the company wound up)

The letters (all dated Feb 2012) apply to 2 different Tax Reference Numbers

The 1st involves 3 letters :81p,352y and 32y

The 2nd involves 2 letters : 252t and 320t

I realise I have probably not supplied enough info but can do so if you let me know what is needed please

I am 74 and not working

Thank you

jem16

HarryS wrote: »

Hi
I am hoping someone can help me in my quest to understand notices of coding I have received.

I receive state pension, private pension(wound up, paid via FAS) & AVCS(from the company wound up)

The letters (all dated Feb 2012) apply to 2 different Tax Reference Numbers

The 1st involves 3 letters :81p,352y and 32y

The 2nd involves 2 letters : 252t and 320t

I realise I have probably not supplied enough info but can do so if you let me know what is needed please

I am 74 and not working

Thank you

I would expect you to have 2 Coding notices and not 3 so presumably the 2nd letter supercedes the 1st letter. One would be applied to your private pension with a deduction made for the state pension and one would be applied to the AVCs pension.

To help further could you provide the amounts for the state pension, the private pension and the AVCs?

patanne

A question for Jem - is the code ending in Y the one they use when giving the additional allowance (over 75 not over 65)? Might this explain part of the difference? Although with only state pension & 2 pension incomes there should only be 2 codes

Harry - the first issue of coding implies that you have a state pension of about £115 per week, the second issue of coding implies that your state pension is £95 per week, have they been issued in that date order? Have you checked that the NI number on both is the same and that they have got your state pension correct on them. It should show as a deduction on one of the pages of about £5000? Are they clawing back underpaid tax from previous years - they should have already told you about that.
Anne

jem16

patanne wrote: »

A question for Jem - is the code ending in Y the one they use when giving the additional allowance (over 75 not over 65)? Might this explain part of the difference? Although with only state pension & 2 pension incomes there should only be 2 codes

Y would normally be used. However if the tax code has been split this would see a T code as it shows something has to be reviewed.

HarryS

jem16 wrote: »

I would expect you to have 2 Coding notices and not 3 so presumably the 2nd letter supercedes the 1st letter. One would be applied to your private pension with a deduction made for the state pension and one would be applied to the AVCs pension.

To help further could you provide the amounts for the state pension, the private pension and the AVCs?

state pension £7137
Other earnings(presume AVCS?) £3200.00 (I actually get £26.95 monthly)
Private pension is approx £500 month - currently being recalculated

Personal Allowance on latest letter is £10660 - says it is allowed for people who are 75 at 5th April 2013

other letter (presume AVCS?) says balance of tax allowances =£3200 "code 320T replaces BR"

I have not been notified of any underpayment of tax on previous years

NI number is correct on all letters

Thanks for your help, very confusing!

jem16

HarryS wrote: »

Personal Allowance on latest letter is £10660 - says it is allowed for people who are 75 at 5th April 2013

Is there a deduction shown on this letter for the state pension? If so how much?

What is the tax code on this notice?

other letter (presume AVCS?) says balance of tax allowances =£3200 "code 320T replaces BR"

It should tell you which provider is to use this tax code. Is it the provider that's paying your AVCs annuity?

HarryS

jem16 wrote: »

Is there a deduction shown on this letter for the state pension? If so how much? £7137

What is the tax code on this notice? 32Y "which replaces 352Y"



It should tell you which provider is to use this tax code. Is it the provider that's paying your AVCs annuity? Yes, it does give the company name and ex ELAS after it?[/QUOTE]

Hope the way I have answered works ok!

patanne

This should leave your last 2 codes as 32Y and 320T which looks right based on the figures. It gives your allowance of 10660 less your state pension of 7137. This reduces your allowance to 3523. 32Y for your AVCs which uses another 320 of your personal allowance, leaving 3203 left for your pension of approx £500 per month and this translates to the 320T code. You should check your "pay slips" and make sure these are the codes that they start using for this tax year.

HarryS

Thank you very much Patanne, I will check. can you explain what exALAS means please?