What Tax Code

Hardworker58

Hi everybody, i have just started a part time job after being finished at my full time one my question is my part time job is 20 hours at £7.60 an hour and i have a pension of £200 amonth which in total is just over £10000 , i got my first wage packet and theres 20% knocked off which is tax code br basic rate , i understand that but they have put me on 698 t for next month what is that and how much will they take off me . the pension is not taxed so i presume it will come out of the wages.

chrisbur

Hardworker58 wrote: »

Hi everybody, i have just started a part time job after being finished at my full time one my question is my part time job is 20 hours at £7.60 an hour and i have a pension of £200 amonth which in total is just over £10000 , i got my first wage packet and theres 20% knocked off which is tax code br basic rate , i understand that but they have put me on 698 t for next month what is that and how much will they take off me . the pension is not taxed so i presume it will come out of the wages.

Looks like your tax code has been split between pension and employment. Assuming no adjustment to the normal 944L tax code then it appears 246L to pension and 698T for earnings. I would expect these codes to be applied on a non-cumulative basis so each month you will get about 205 tax allowance for pension and 582 for your job. Earnings above that will be taxed at 20%. You should be getting tax notices advising of these codes.
Your tax at year end will probably be a bit out so best to check that when you have all your year end details.

LittleVoice

Hardworker58 wrote: »

Hi everybody, i have just started a part time job after being finished at my full time one my question is my part time job is 20 hours at £7.60 an hour and i have a pension of £200 amonth which in total is just over £10000 , i got my first wage packet and theres 20% knocked off which is tax code br basic rate , i understand that but they have put me on 698 t for next month what is that and how much will they take off me . the pension is not taxed so i presume it will come out of the wages.

How long have you been receiving your pension? If it was paid in the last tax year (or HMRC have already heard about something being paid this year), then they could have adjusted your code in order to recoup under-paid tax over the course of this year rather than sending you a bill for a one-off payment regarding the untaxed pension. (All ordinary pensions are taxable.)

Check your next pension payment to see whether they begin deducting income tax having been instructed to do so by HMRC.