Tax Code

mardatha

My husband's code has changed yet again and he will have to pay more tax. Last year it was 307P, and now it's 288P. He's retired and has a small work pension + state pension.
But other people on here are saying their codes have been raised and they now pay less tax. How can we check he's paying the right amount of tax?

CLAPTON

basically a P code is one for people aged 65 to 74 and not receiving over 24k
so will have a tax allowancwe of 10,500 this year (and next as the government have frozen this (c.f. granny tax )

so if your OH has two incomes, the state pension and a private pension
then the state pension will have no tax deducted but the taxcode for the private pension will be adjusted to collect the tax

it would seem that for this year your OH state pension is

10500- 3075 = 7425

and next year will be
10500-2885 = 7615


if otherwise maybe tell us the full details

mardatha

That does make sense thank you!