Is my new tacode of 419l correct?

Tytoalba_2

Hi Everyone,

Could do with some easy reading advice

I have just received my new tax code of 419L and I dont know why but I dont feel it right I am not in any condition to try to think this through so hope you can help guide me

I receive incapacity benefit (£377.00 p/m) for a few years now after a screaming breakdown at work, plus suffer physical disabilities. Of course Mr Cameron wants me back at work. He cant do without me!

I also drew my small private pension of £95 per month, and also my work pension of £425.00 per month. No other income All pre tax

I am 62, married, so does a tax code for 2013 of 419l feel right?

If you say no, then I will have to look back several years as I seem to think it has been in this region for a while! Am I being diddled?

Horseunderwater

What you need to do is look for all the total income for each tax year since you began claiming your pensions. If that income exceeds the tax allowances for the approp year then there will be a tax liability and that is why you need to check it.
Are you male or female? If male then you will not be on state pension yet, but if female then you may be. What may have happened is that some of your allowances are being put onto your pensions or possibly if they have not taxed you they are now collecting the underpayment through your coding. Was it a P800 notice that you got? If yes it should have a calculation stating how the code was arrived at.

Tytoalba_2

Many thanks for your response. I should have advised that I am Male in the post.

Yes, there was a breakdown at the foot of the page which I assume they have correct. It is
Your personal allowance £9440
Employment Support Allowance -£5247
a tax free amount of £4193

I now think this all balances (but who am I to say) so I do hope they are right, as I had a run in with the taxman which went on for years until I got a tax accountant on board and it was sorted in a flash, and my bill was reduced from a few grand to just over a couple of hundred, which I paid immediate only to get another demand for a few quid?? (interest it turned out) so I sent this straight away and got another bill for around £1.3o, interest so I cracked & hit the roof with them. Perhaps this saga was the key to the breakdown? Perhaps.

Thanks again
Tyto

Horseunderwater

The income statement is wrong. They have not included your pensions in the calculation. So unless basic rate tax is being deducted from both pensions, you have not paid any tax due on those either.
I make your total gross income inc pensions to be £10947 so less £9440 = £1057 @ 20% = £211.40 tax due. But if the people operating your works and private pension are using the BR 20% code on both then there may be a refund due instead. You need to find out and sort it, otherwise you'll get into another mess. When did you begin getting pension payments? If only recently then you will not have to go back too many years. Incapacity benefit has always been taxable if any other income takes you over the personal allowances in anyone year. Lots of folks get caught out by this.