Can I choose a lower tax code?

finnis

Well, can my wife actually?

She puts a fair chunk of money into a private pension each month, so used to get a nice little cheque from the taxman every year. However, a couple of years ago she had her tax code increased to take account of the pension payments.

This year she ended up with a bill for over £300 due to a pay rise.

She hasn't been unfairly taxed, but would rather get a tax refund at the end of the year as she's not the best at budgeting and it would be, effectively, a good savings plan for her.

So can she go back to having the standard tax code or is there no going back? Or could she simply tell the tax office she's going to stop paying into her pension or would she get into trouble when it transpires that wasn't true?

Thanks in advance,

Ade

MXW

finnis wrote: »

Well, can my wife actually?

She puts a fair chunk of money into a private pension each month, so used to get a nice little cheque from the taxman every year. However, a couple of years ago she had her tax code increased to take account of the pension payments.

This year she ended up with a bill for over £300 due to a pay rise.

She hasn't been unfairly taxed, but would rather get a tax refund at the end of the year as she's not the best at budgeting and it would be, effectively, a good savings plan for her.

So can she go back to having the standard tax code or is there no going back? Or could she simply tell the tax office she's going to stop paying into her pension or would she get into trouble when it transpires that wasn't true?

Thanks in advance,

Ade

From what you say your wife is now on the correct tax code, so that's the code that she will remain on. I'm afraid you can't pick and choose your tax code.

ctm_2

All your wife needs to do is keep her tax office informed of the amount she is paying into her pension, and her estimated income for the year so that the code can be updated if necessary.

finnis

thanks both