High income tax

RN_Vet

Having moved on from 32 years service in the Royal Navy I have the benefit of a pension. This combined with the full time job I have seems to allow HMRC to sting me for huge amounts of tax. After checking the tax calculator I seem to be paying far too much tax, how do I go about trying to get some money back without being rude to the person on the other end of the phone. :mad:

Caz3121

what is your tax code?

CLAPTON

RN_Vet wrote: »

Having moved on from 32 years service in the Royal Navy I have the benefit of a pension. This combined with the full time job I have seems to allow HMRC to sting me for huge amounts of tax. After checking the tax calculator I seem to be paying far too much tax, how do I go about trying to get some money back without being rude to the person on the other end of the phone. :mad:

I'm sure that after 32 years in the forces you will appreciate the need for some facts before drawing conclusions

getmore4less

drop some numbers in a post.

pension, income, both tax codes and the tax you are paying and why you think it is too much

RN_Vet

RN pension is £14000 a year and my main income varies depending on how much overtime I do. A rough guess I would say the high end is £33000 a year. My pension is taxed at basic rate and my income is 286L. For about 6 months I was taxed at K148. They said I owed them £1345. I paid this but my tax code still says I pay over £1000 per month.

Caz3121

do you have any taxable benefits through your employment such as company car of private healthcare?
What does the coding notice show how your tax code was worked out?

agrinnall

Why do you think you would need to be rude to the person on the other end of the phone? Aren't you supposed to learn discipline in the forces? Just ring them up (calling at 8 am usually gives the best chance of a quick answer, although they may be more busy just now with the change of tax year), be polite, keep your temper, and if you're not happy with the outcome then return here to tell us why and ask for suggestions on how to proceed.

chrisbur

RN_Vet wrote: »

RN pension is £14000 a year and my main income varies depending on how much overtime I do. A rough guess I would say the high end is £33000 a year. My pension is taxed at basic rate and my income is 286L. For about 6 months I was taxed at K148. They said I owed them £1345. I paid this but my tax code still says I pay over £1000 per month.

Without seeing the full details and considering that the figures quoted above do not fully add up (I assume they are a rough guess) cannot offer a definate answer but proberbly the answer lies in the fact that you are due to pay 40% tax but as your income is split it cannot be collected.
As you are getting income from two places and the total that you get takes you into the 40% band it is virtually impossible for any tax code to get your tax 100% correct. On the figures you quote 14000 pension BR code and 33000 income 286L you would pay a shade over 8800 in tax. The correct tax for a total income of 47000 assuming 944L tax code would be 8618 which would be quite a close estimate. Of course this assumes you have nothing complicating your tax code and does not allow for the 1345 owed and the K148 which may well change things a bit. Either way you are unlikely to pay the correct tax as it just cannot be done under these conditions you nearly always either underpay and owe or overpay and get a rebate. Check you coding notice hopefully this will confirm that the adjustment to code is to collect the 40% tax that cannot otherwise be collected. If it says something else and this is not the reason then you will be underpaying tax.
If your tax really is over 1000 a month then this means that your income is somewhat higher than you have said.

pjread

Guessing the OP may be including the ~£4k a year NI when stating over 1k a month tax, as that's about right including NI?