Help with Tax Code - starting new job

Horseunderwater

Do you get a state pension? Because according to the coding notice that you copied out earlier HMRC state that you do. And it is taxed on a previous year basis, so the £7160 would be the gross state pension from 2012/13. You will get another coding notice in due course setting out the gross pension for last year to be taxed this year. So when you talk to hmrc - you can ask to split your balance of allowances between your new jiob and the employer pension.

sarymclary

After waiting for a very long time to speak to an HMRC advisor, I've been told my current tax code is 264L, and this relates only to my pension. When I start work, my new employer will either use OT or BR code. Once HMRC are notified by my employer, I will then be issued with a new tax code (presumably relating to basic rate of tax).

I will continue to receive my pension gross, as part of my tax-free allowance.

I'm still confused what the other calculation was all about, because HMRC are aware that I only receive just over £1100 p/annum from my pension.

Oh well, here's hoping it all goes smoothly once I start work in 4 weeks' time.

cattermole

I've had a similar situation with a small annuity and they just allocated the tax code to cover that so I wasn't paying tax on it but wasn't allocated the full personal allowance either. I too have recently returned to temporary work. I then got a tax code splitting the PA between the two ie 5000 on each which didn't make sense as the pension is only £250 a year!

Anyway phoned HRMC and after talking answers to a machine I eventually got to speak to a very helpful girl who explained the computer had automatically done it like that. Anyway we discussed it all and as I was phoning the tax office for my employer it was easily sorted a small amount of the allowance was allocated to the pension and the rest will be on earnings.

Until they get your P46 from your new employer they can't really sort it out as they need their tax reference. Once this is triggered even if you get a 50/50 split like I did, another phone call will sort it. Any over payment of tax through PAYE and being on BR for a month will automatically adjust when your new employer gets sent the new tax code and you either won't pay tax that month or they will pay a small refund in your wages.

It will be fine once you actually start all you have to do is fill in the P46, as said above, they file it online and then if the code isn't right when you get sent one (copy will go to employer as well) just phone again to sort. If you are going to earn over or 10,000 in job probably best to put pension on BR I would think.

They will automatically send out another tax code to your employer and all they have to do is input the new code into your PAYE record on their system.

xylophone

Do you receive/have you been receiving any bereavement benefits?

(eg Widowed Parent's Allowance.)

List here https://www.gov.uk/browse/benefits/bereavement

sarymclary

Thank you Cattermole, that's pretty much what I had managed to gather from the guy I spoke to at HMRC. I will be earning over £10k, and he said that he thinks they'll assign a small portion of my tax-free allowance to the pension, for that code so I won't be taxed on it, and the remainder will be for my new job with a code for me to pay the basic rate of tax.

Essentially he said that until my new employer gets me into the system, nothing can be sorted now, just as you have said.

Xylophone, I have received Widowed Parents Allowance in the past, but this stopped in 2009 when I moved in with my partner, so this cannot be attributed to the tax year for the coding notice I quoted.

xylophone

But what is this £7160 of pension/benefit? It cannot be your widow's pension from your late husband's employer (the amount is wrong), you are not receiving any other taxable benefits (CTC is not taxable) - did HMRC clarify?

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

cattermole

I think its a leftover from when she was getting widows pension in the tax code. I say this because the two systems in regard to say Carers Allowance don't automatically join up.

So if you start work when in receipt of carers allowance earning up to the amount allowed you have to physically tell the HRMC to adjust your tax code as they don't know you are getting it. That was certainly the case a few years ago. There was no mechanism between the two departments for it to happen automatically. I doubt unless central government has made massive investment since in linking then it's changed. It all gets sorted eventually.

I wouldn't worry about it until you start work, sure it will all be fine and get sorted.

Good luck with your new job. X.