Tax Codes

Savvy_Sue

jem16 wrote: »

You should only have one part - part 1a.

Parts 2 and 3 should have been given to the new employer.

Agree, and the information on part 1a tells you how much that employer paid you in your final tax year with them, and how much tax they deducted, and what tax code you were on at the time you left.

katies_mum

Hi
We have part 1A and photocopies of Parts 2 and 3.

jem16

katies_mum wrote: »

Hi
We have part 1A and photocopies of Parts 2 and 3.

Ok that's fine.

katies_mum

After reading your postings I didn panic that we hag given the wrong parts in. Just got to wait now for pay at the end of February and hope that overpaid tax from (november to January is there) then will sort the rest as soon as the P60 arrives.
Thanks

jem16

katies_mum wrote: »

Just got to wait now for pay at the end of February and hope that overpaid tax from (november to January is there) then will sort the rest as soon as the P60 arrives.
Thanks

At least that is part of the rebate and better than nothing. Hopefully you should get the rest sorted out by around July.

Sorry for panicking you!

katies_mum

Hi, thanks for helping us out. At least I know we have the right parts and I am able to submit all or some of them to HMRC... think by the time I`ve got everything together to send them I`ll need a big box and not an envelope..lol

katies_mum

Other half has received 2 letters from HMRC this morning..I think what they are saying about April 2013 to April 2014 is correct but would be very grateful if anyonce could clarify it for us.

As you know he has had an issue with wrong tax code on his main employment since the summer (which hopefully is getting sorted out). Also just realised I have never mentioned it..sorry! he is in receipt of Royal Navy Pension which has always just been taxed at straight 20% and this has been the case for the last 10+ years.

The two letters now seem to be splitting the tax allowance between his current job and his pension. This is what the letters say:

Personal allowance 9440
flat rate job expense 80
9520
pension - 4548
tax free amount 4972

We turn £4972 into a tax code of 497L and this will be used by your employer to take off the righ amount of tax each time the pay you from 6 April 2013. This means you can get about £414 a month before your employer takes tax off you.

Next letter:

Balance of tax allowance £4548
A tax free amount of £4548

We know your have another job (you may get a P2 code notice for that job) We have used some of your alloances to give you a tax free amount for this pension.

We normally split your tax free allowanc into monthly or weekly amounts. This means you can get about £379 a month before Paymaster takes tax off you.

I can see their logic, please can anyone confirm that this seems ok.

With grateful thanks. x

jem16

katies_mum wrote: »

I can see their logic, please can anyone confirm that this seems ok.

With grateful thanks. x

It's not wrong in that the figures are correct but I'm not sure of the logic behind it.

How much does our husband now earn and how much is the pension?

katies_mum

Thanks for replying jem16,

These are the figures give or take a few pounds. Annual wages approx £8860 gross (its only part time) and Navy pension is £6550 gross.

jem16

katies_mum wrote: »

Thanks for replying jem16,

These are the figures give or take a few pounds. Annual wages approx £8860 gross (its only part time) and Navy pension is £6550 gross.

On those figures all seems fine with the new codes.

Splitting the allowance is the best answer here as neither of his two sources of income is above the personal allowance. Using 952L for his work and BR for his pension would see an overpayment of tax.