End of year Income Tax question

CLAPTON

CDB199 wrote: »

Clapton, some figures for you:

2007/8
Earnings - 79,333
pension - 5,700
tax code - 792L

2008/9
Earnings - 56,848
Pension - 6,384
code - 998L

2009/10
Earnings - 50,333
Pension - 6504
code - 1042L

2010/11
Earnings - 60,833
Pension - 6,564
code - 972L

2011/12
Earnings - 69,333
pension - 6800 (sorry, gave wrong figure in earlier post)
code - 1072L

If you could take the time to go through these it would be much appreciated as don't want to have to send figures of to the hmrc for the sake of it.

thanks again

firstly you should have received a notice of coding from HMRC for each year explaining how they arrived at your tax code.

the taxcode may be partly based on a correction from the previous year and partly based on thier guessing what you might spend in the 'current year'

presumably you must have told them some figues at some time or other each year otherwise how did they know to give you any relief at all?


Without knowing what you told them or what the notice of coding say all I can calculate is what tax refund you should have received and what tax code would have recovered it during that year;
but I must tress that it would have been impossible for HMRC to get it correct for the then current year as they would have no way of knowing what you had planned to pay; so they will always be behind.



for 11-12
pension payment 6800
grossed up is 6800/.8 = 8,500
tax relief claimable = 8,500 x 20%= 1,700
if this were recovered via tax code then tax allowance would change by 1,700/.4= 4250
so new allowance = 7475+4250 = 11,725 so a code of 1172L


for 10-11
pension payment 6564
grossed up = 6564/.8 = 8205
tax relief claimable = 8205 x 20% = 1641
if recovered by tax code then tax allowance would change by 1641/.4 = 4102
so new allowance 6475+4102= 10577 so a code of 1057L


and so on you can do the calculation yourself
note that for year 2007-8 the tax rate was 22% rather than 20%

somethingcorporate

Alternatively you could send all the information in a letter to HMRC and they will deal with it.

Without going into specifics assuming you have no additional benefits then it appears you are owed some tax back for your pension.

Make sure you include as much information as you can (P60s are useful).

CDB199

I have penned a letter to them now including the figures and asking for them to look into it.

I wrote to them a couple of years ago asking the same and ended up paying more. However, as you suggest, they know i pay into a pension as my tax code reflects. Just they may not know how much i have been paying over the years!