Help for mother in law please....

antonic

It looks to me that your MIL will continue to get Widowed Parent Allowance until your niece/nephew stops receiving Child Benefit
https://www.gov.uk/widowed-parents-allowance/overview

So for example in this tax year (2013/14) her tax allowance will be as follows:

Personal Allowance £9440
Widowed Parent Allowance £8140 (based on figure quoted)
Balance of Code £1300

This means that she will end up with an underpayment each year, if her wages are more than £1300.

HMRC may put her into Self Assessment otherwise she will end up underpaying tax each year OR she can ask to go into SA.

Hope this helps.

hoo wrote: »

The letter from 6 April 2012- 5 April 2013 says that:
Personal allowence £8105 see note 1
State pension/ benefits -£7944 see note 2
Underpayment restriction -£1776 £9720 see note 3
-£1615 see note 4

We turn £-1615 into tax code k160 and send to (her employer). They should use this code to take off the right amount of tax each time they pay you from 6 April 2012.

Note: she spoke to her payroll today about who said the tax office never told them about the new tax code. They then magically found it but said she missed the pay run to apply it so will have to wait til next week.
New tax code is 130L

patanne

As long as her employers are using the tax code 130L for the coming year she should not owe tax for this year UNLESS any underpayment from last year is to be included in this years code rather than being paid as a lump sum.

jem16

hoo wrote: »

New tax code is 130L

Have you got the coding notice for this tax code and why it is lower than the normal 944L?

antonic wrote: »

It looks to me that your MIL will continue to get Widowed Parent Allowance until your niece/nephew stops receiving Child Benefit.

Where did this come from?

OP mentions MIL receiving a widow's payment that lasted for 12 months and finished in September 2012. This would be Bereavement Allowance.

patanne

My apologies, I misunderstood. If the benefit (or any other benefit) is not being paid in this tax year then I would expect her code to be the normal 944L. I think the amount they taxed her on for last year needs checking too. Did she pay tax on the six months benefit she received in 2011-12?

xylophone

I am mystified by the reference to widowed parent allowance and the niece/nephew - OP did not mention that her MIL was responsible for a child?

OP - was your MIL receiving a taxable benefit in addition to the Bereavement Allowance that was paid between September 2011 and September 2012 - possibly Carer's Allowance as you indicated in an earlier post that your FIL had been extremely unwell for a number of years before his death?

Can you supply her P60 figures for 2011-12 and details of other taxable income/benefits and details of any other taxable income/benefits for 2012-13?
Now that FIL has died and Bereavement Allowance is no longer payable, she should be on a normal 944L code unless there is an additional overpayment that is being collected or some other state benefit?

Has she received a Notice of Coding for 2013 -14?

hoo

antonic wrote: »

It looks to me that your MIL will continue to get Widowed Parent Allowance until your niece/nephew stops receiving Child Benefit
https://www.gov.uk/widowed-parents-allowance/overview

So for example in this tax year (2013/14) her tax allowance will be as follows:

Personal Allowance £9440
Widowed Parent Allowance £8140 (based on figure quoted)
Balance of Code £1300

This means that she will end up with an underpayment each year, if her wages are more than £1300.



HMRC may put her into Self Assessment otherwise she will end up underpaying tax each year OR she can ask to go into SA.

Hope this helps.

Thanks for the reply but I think you may misunderstand. She doesn't have any dependents- both her children have their own houses so it's just her at home. She had a bereavment allowence for 12 months but no longer receives this it ended in Set 2012 that is the only benefit she has claimed.

hoo

She never ended up claiming carers allowence FIL got diagnosed in the early July 2011 and passed away early Sept 2011. He was registered disabled after a series of heart attacks but it was cancer that ended his life.

I've just checked her 2012 pay slips and from 04/2012 she was paying tax on code K160 but there was no mention of the bereavement allowence on the pay slip- should there have been?

Dazed_and_confused

hoo wrote: »

She never ended up claiming carers allowence FIL got diagnosed in the early July 2011 and passed away early Sept 2011. He was registered disabled after a series of heart attacks but it was cancer that ended his life.

I've just checked her 2012 pay slips and from 04/2012 she was paying tax on code K160 but there was no mention of the bereavement allowence on the pay slip- should there have been?

I think you need to sit down and get all relevant paperwork together and look through it to understand exactly what has happened and what, if anything, is wrong.

This thread is already complicated with mentions of different benefits that aren't necessarily relevant/received by your mil.

I suggest you start from April 2010 and look at what has happened in each of the next 3 tax years. You need to find out exactly what DWP benefits she has received and what other income (wages, pensions etc) she has had.

Bereavement Allowance would not be on a pay slip, I thought this was paid by DWP.

If you post the details on here people will help but they need clear and accurate facts to help. For example in your post yesterday at 10:18 you say income was £13077 but further down it is obvious the P60 included details from 2 jobs (tax in previous employment) was the 13077 from one job or the total of both jobs?

hoo

I have the letters she got from HMRC
Letter sent on 18th Feb 2012 Coding notice for 2012-2013 K160

But just to make things fun I've just found another coding notice
Letter sent on 14th Aug 2012 coding notice 2012-2013 K69 which is to replace the previous code of K160

Letter sent on 27th Jan 2013 Coding notice for 2013-2014 130L

On her P45 which was given when her company changed hands the code on it is K160 and has a leaving date of 29/06/12 on it.

jem16

hoo wrote: »

I've just checked her 2012 pay slips and from 04/2012 she was paying tax on code K160 but there was no mention of the bereavement allowence on the pay slip- should there have been?

No. Bereavement allowance is paid directly into a bank account. No payslip is ever issued.