Help with Tax Code - starting new job

sarymclary

Hi,

I'm starting a new job in 4 weeks' time. I have been a SAHM for several years, so do not have a P45 to take to my new employer.

I do receive a small monthly pension, for which I have a P60, and have just had a recent pay advice slip for. These both have 2 different tax codes, but I suspect both of these may be purely for the pension, and not suitable for my new employer.

Briefly, the P60 code is 228L, the pay advice code is 264L. I am presuming that the changes here are down to allowances changing for the tax years?

My new job is going to be full-time, and I will earn over £10k. Should I just rely on my new employer to automatically put in the 'right' code for me? I have looked online and at the MSE advice pages, which suggest the code should be 1000L.

I am going in to see my new employer tomorrow, to hand in my paperwork for joining them, and was considering taking along my P60 as proof of my NI code, but wonder if they'll also use the tax code, and it could end up being wrong?

Any advice gratefully received.

chrisbur

Is the pension your only taxable income if so not sure why it has a low tax code?
Assuming no other taxable income your best bet would be to contact HMRC after you have had your first wage to get your tax code split between employment and pension.

sarymclary

Many thanks for the replies. The pension is my only taxable income, it's paid by my late husband's previous employer, and less than £100 p/mth.

My new employers are a very small firm, and they aren't used to having new starters, hence why I'm trying to find out what I can before I start. I'm replacing someone who's been there 30+yrs.

I will take your advice and contact HMRC after I've had my first pay, and hope the new employer will put me onto a standard basic code.

xylophone

Why is your personal allowance so low?


http://www.hmrc.gov.uk/incometax/intro-income-tax.htm

chrisbur

Are you paying any tax on the pension?

sarymclary

xylophone wrote: »

Why is your personal allowance so low?

http://www.hmrc.gov.uk/incometax/intro-income-tax.htm

chrisbur wrote: »

Are you paying any tax on the pension?

I've no idea why it's so low?! Could my Child Tax Credits affect it? I've been in receipt of these, and have reduced as my children got older/left school. This was my only other income, so can only imagine that is what they're reducing the amount by.

I've just dug out an old P60 (2013) I didn't pay any tax, but my code was then 112L

My pay slip from April 2013 shows a tax code of 228L (no tax paid)

My pay slip from April 2012 shows a tax code of 112L (no tax paid)


An old pay advice from April 2011 shows I was paying tax of £3.40 on a Gross payment of £87.42. Tax code 83L.


If my receipt of tax credits has affected it, I will not be in receipt of these from the time I start my new job, but presume my pension provider will still need a tax code for me, but a different one, as I presume I will now be taxed again on the extra income it provides? I would rather start paying the right amount, than getting a nasty surprise.

sarymclary

No, I've never been overpaid, so it will not have been that. It's all terribly confusing

xylophone

coding notices?

Example here http://webarchive.nationalarchives.gov.uk/20080205174030/http://www.hmrc.gov.uk/p2/p2.pdf

It would seem very important for you to contact HMRC.

sarymclary

blondebubbles wrote: »

So don't you get coding notices?

I got one in January 2013, but haven't had one this year... or not that I can find, and I've searched for it. I'd usually keep that somewhere safe.

On that one it gives the working out as:

Personal Allowance - £9440
State pension/benefits - £7160
tax-free amount - £2280

Which I presume gave me my tax code of 228L?

It says they: think the amount of state pension/benefits you will receive is £7160. The state pension/benefit is taxable, so we have used £7160 of your tax-free allowance because the DWP cannot take tax off your payments.

So whilst they cannot tax my child tax credits, they do take it into account as part of my taxable income allowance, and anything extra I received could be liable to taxation.

My current CTC income for this financial year should be £5980, so my tax free amount should be £4020, presumably giving me a tax code of 402L, my pension income is still only £1148 for the year.

I think I will give HMRC a call tomorrow to find out more. I am guessing I will need a different tax code for my pension, and my new employer should just use the basic rate 1000L?

sarymclary

No, I don't receive anything else. I can't think what else they've been using?

chrisbur

Have you been receiving Widowed Parent's Allowance or Widowed Mother's Allowance?