My New Tax code

tanith

I feel really stoopid as I have looked and read all about Tax coding and I still don't understand my new code... I have recently had to take early retirement and have just had my first Occupational pension paid... my new code is K10 could anyone please explain this code to me in plain and simple terms... I paid more tax on my pension than I thought I would....:eek:

Also as I didn't earn as much as expected last year would I be due a tax rebate? and will that come automatically or do I have to prompt them?

thanks...

CLAPTON

a K code means that they add 10x the code (i.e. 100 in your case) to your income that is controlled by the code and work out the tax.

it usually arises because you have more than one income... if you would like to give the details of your income(s) and the appropriate tax codes, it would be possible to advise.

if this years income is solely from one income and you are paid by PAYE and your tax code is correct then your tax will be correct. If you would like to povide full details then it would be possible to advice.

tanith

Thanks for that.. my income is only from an Occupational Pension and IB amounts are:

£419.91
TAX 72.22
= £344.69


At present I am receiving Incapacity Benefit of £314 per month but obviously this will change when I start part-time work... I have about £10 per month interest on some savings... Not sure what else you need It just seemed a lot of tax on such a small amount.. I guess if thats correct all is well and I have to pull in my horns a little more than I thought:rotfl: thankyou

CLAPTON

i think maybe you are muddling up two different tax years.

for last year i.e. april 6 th 2006 to 5th april 2007
you need to list your total gross income and total tax paid and your final tax code.

income here means everything coming in i.e. earning from working, pensions, benefits, interest on saving (say paid gross or net but leave out any ISA income), dividends



and presumably your new tax code of k10 is for 2007-8 or what?

tanith

I will have to look out some paperwork and my final payslip so will get back with that.....thanks

SonniC55

Hi Tanith

Your K coding is probably due to unpaid tax from a previous tax year which is now being recovered through your current earings.

HMRC should have sent you a notice of coding for this showing how they arrived at the K10 code. If you no longer have this try giving them a call to query how the calculation has been made