Help for mother in law please....

jem16

hoo wrote: »

Letter sent on 27th Jan 2013[/B] Coding notice for 2013-2014 130L

Can you give the details of the allowances and deductions that make up this code please? We need to know why the code has been reduced.

hoo

Dazed_and_confused wrote: »

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?

Her company changed ownership but she continued to work through. The old owners issued a p45 which may account for the "previous employment"

hoo

Thanks for all your replies and help.
I'm trying to get my head round this too as it's not my accounts/ paperwork I'm working with what I've got so apologies if I'm not quite up to speed sorry.

jem16

hoo wrote: »

Thanks for all your replies and help.
I'm trying to get my head round this too as it's not my accounts/ paperwork I'm working with what I've got so apologies if I'm not quite up to speed sorry.

Can you please give the details aksed for in Post 22 please? It's important to see why your MIL is on a 130L tax code this tax year.

Dazed_and_confused

hoo wrote: »

Her company changed ownership but she continued to work through. The old owners issued a p45 which may account for the "previous employment"

The fact is though that she (at least) 2 jobs in that tax year and we are still none the wiser as to whether the 13077 is from the second job or is the total of 2 jobs.

I think you also need to understand that tax codes aren't the be all and end all, all they do is ensure a particulàr amount of tax is deducted by an employer or pension company during the year. Tje hope is that the correct amount of tax is taken during the year but the amount due/overpaid is always calculated after the tax year ends.

As your mil has had a deduction in her code for underpaid tax the likelihood is she had one or more of the year end calculations but without all the info no one will be able to properly help you.

If you look at jem16's posts you will she is very knowledgeable/helpful but anyone trying to help can only be of any use with proper information.

The Tax Codes thread started by Katie's mum is a good example of how complicated these threads can become!

hoo

jem16 wrote: »

Can you give the details of the allowances and deductions that make up this code please? We need to know why the code has been reduced.

tax code 2013/2014
personal allowence- £9440
State pension/state benefits- -£8139 from notes- We think the amount of state pension or other taxable state benefit you will receive this year is £8139. The state pension or state benefit is taxable so we have used £8139 of your tax free allowence because the DWP cannot take tax off your payments
a tax free amount of £1301- from notes- If your income for the year from *company* is more than £1301 you will pay tax as follows
at 20% on the first 32010
We normally split your tax free allowance into monthly or weekly amounts. This means you can get about £108 a month or £25 a week before *company* takes tax off you.

xylophone

In August 2011 you posted that your MIL worked for 56 hours a week for eight months of the year on minimum wage.

Do you have her P60s for the tax years 2010-11 and 2011-12?

You have already advised that she received Bereavement Allowance of £100 a week between September 2011 and September 2012.

How much BA was received in the tax year 2011-12? BA is taxable but not at source so it is quite likely that she underpaid tax in that tax year.

How much BA was received in the tax year 2012-13?

The Notice of Coding for 2013-14 shows state pension/state benefits of £8139 and yet you advise that your MIL is not in receipt of any state benefits or pensions. This needs to be clarified.

jem16

hoo wrote: »

tax code 2013/2014
personal allowence- £9440
State pension/state benefits- -£8139 from notes- We think the amount of state pension or other taxable state benefit you will receive this year is £8139. The state pension or state benefit is taxable so we have used £8139 of your tax free allowence because the DWP cannot take tax off your payments .

As xylophone has stated there is a deduction for a state pension/benefit which is most likely for the Bereavement Allowance that HMRC still think your MIL is receiving. If she is definitely receiving no income other than her wages from work, she should phone HMRC on Monday and inform them that this payment stopped in September 2011. They should then allocate the 944L tax code for this tax year.

It is also more than likely that the Bereavement Allowance is what has caused the underpayment in 2011/12 but you would need to provide details to make sure. This would be the P60 for 2011/12 plus the amount of Bereavement Allowance which you would need to use bank account statements for as no P60 is issued for that.

For 2012/13 it is quite likely that your MIL overpaid tax as her tax code included a deduction for Bereavement Allowance for the whole year and you say it was stopped in September 2012. Again figures would be needed to clarify this, especially to clarify if the P60 figures that you gave earlier included the amounts from both jobs.

hoo

Hi guys,
Sorry not checked in for the past few days but been really busy at work.
Just wanted to say thanks for all the help so far MIL thinks you are all wonderful people and very kind! :A
I will post other info requested in the next day or so as I know without figures you can't do the sums!!
Just for info she got her pay slip today, tax code was 130L and she had very little tax taken ...£2.20.

Dazed_and_confused

hoo wrote: »

Hi guys,
Sorry not checked in for the past few days but been really busy at work.
Just wanted to say thanks for all the help so far MIL thinks you are all wonderful people and very kind! :A
I will post other info requested in the next day or so as I know without figures you can't do the sums!!
Just for info she got her pay slip today, tax code was 130L and she had very little tax taken ...£2.20.

It might not be much tax but if she isn't receiving State Pension (or other taxable state benefits) the tax code 130L is probably wrong and this still needs to be sorted.

If she only ever got £100/week bereavement allowance I don't understand why HMRC would include a deduction of £8139 in any code, this is about £156/week.

What your mil has "claimed" is utterly irrelevant in this situation, it's what she had been getting from DWP that matters. Are you sure there nothing else you haven't mentioned in previous posts?