Pension, savings and personal allowance help please.

xylophone

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm The figures in the examples are out of date. See http://www.hmrc.gov.uk/rates/it.htm

As has been said in previous posts, you cannot complete R85 if you know you have to pay some tax. You reclaim on R40. http://www.hmrc.gov.uk/forms/r40.pdf

jem16

xxdeebeexx wrote: »

My pension comes from 2 different places. Most from TP but some from the Borough. BR is the Borough code and I will be taxed at 20% on this part.

TP is Teacher's pension I assume? Normally when you finish teaching your council would send the P45 to the TP scheme. However I would chase this up as it should have happened by now.

Normally the main TP payment would have your tax code attached to it and BR would be used for the extra bit paid by the council. However in your case the total will be less than your personal allowance so it would be in your best interests to have the tax code split so that you do not overpay too much tax.

I suggest you phone HMRC and ask them to split the 2 tax codes according to how much you expect to get from each of the TP and the council.

xxdeebeexx

jem16 wrote: »

TP is Teacher's pension I assume? Normally when you finish teaching your council would send the P45 to the TP scheme. However I would chase this up as it should have happened by now.

Normally the main TP payment would have your tax code attached to it and BR would be used for the extra bit paid by the council. However in your case the total will be less than your personal allowance so it would be in your best interests to have the tax code split so that you do not overpay too much tax.

I suggest you phone HMRC and ask them to split the 2 tax codes according to how much you expect to get from each of the TP and the council.

Thank you, you are spot on.
I phoned HMRC and they have now split my code and I should be receiving them soon.The tax paid will be paid back.

Is there any advantage in how they are split?
Can the split be changed in years to come?

Thank you so much for your help


dx

jem16

xxdeebeexx wrote: »

Is there any advantage in how they are split?

They should be split according to the expected income from each. So for example if you had £5000 from the main scheme and £2291 from the council, the codes would be something like 550L ( so giving approximately £5500 allowance) and 260L. ( approximately £2600 allowance) Together they total 810L which is the normal basic code.

Can the split be changed in years to come?

Yes they can. If you find the split codes are not covering the amounts well enough they can be changed.