Mother's tax code, just checking ...

Savvy_Sue

Would be grateful if the better tax educated than either my mother or I would just check that this is right ...

Mother is over 75, and widowed (Dad died in December 2009).

She has a state pension of £8108.00 pa, and a widow's pension from Dad of £6978.93 for 2012-13.

In October 2011 she had a P800T saying she'd underpaid by £493.20 in 2010-11, and I checked their figures and thought they were right.

Her April 2012 P60 from her pension says she received £6739.80 from them, with a tax code of 238Y at the end of the year. She had £870 tax deducted there.

And her tax code for 2012-12 is now 8Y, arrived at because:

Personal allowance: £10,660
State pension -£8,108
Underpayment restriction -£2,466
Tax free amount £86.

Which is probably right, but it would be good to know if this will actually clear the underpayment so that her net pension will go up next year? I realise it all started when Dad died and his pension was initially paid without her having the right tax code.

jamesd

That underpayment restriction will clear the £493.20 owed for 2010-11 so if the tax code was right since then this should be it.