Early Retirement....First Week

Jack_Itin

Finally got through again..... different chap but just as helpful......two new codes have been issued.......595L for pension....470T for zero hours......does that make sense ?..........Jack

jem16

Jack_Itin wrote: »

does that make sense ?..........Jack

Provided your pension is £5950 or less than yes that's fine.

Just one thing - the tax codes add up to 1065, giving an allowance of £10,650. That's £50 more than the normal personal allowance.

Do you get a £50 allowance for something - ie uniform washing?

Jack_Itin

Pension is £5,959.......not sure on that allowance.........before I retired
my tax code was 1066 L..........I did wonder why........Jack.

jem16

Jack_Itin wrote: »

Pension is £5,959

Ok the tax code you've been given should be fine then. The last figure is usually dropped to give the allowance so 595L will be ok. Just make sure you review it each year and let HMRC know of the new pension figure if it goes up.

not sure on that allowance.........before I retired
my tax code was 1066 L..........I did wonder why........Jack.

Well hopefully the P2 Coding Notices will explain what that extra allowance is for. However if it's for something work related which no longer applies you really should get it removed. It's only saving you £10pa on tax though.

Jack_Itin

Got P2 notifications this morning..... so 3 1/2 hours on 'phone was well worth it......big thanks to jem16 for advice....Jack.

jem16

Jack_Itin wrote: »

Got P2 notifications this morning

So what's the extra £60 allowance for and is it still pertinent?

Do any mention being used in a special way - this would mean a Mth1 tax code?

You also need to make sure you check your pension payslip and work payslip to make sure the new codes are being applied.

Jack_Itin

The £60 allowance is for "laundry costs or protective clothing ".... and is still in use......I think it goes back to years ago, when our firm stopped doing the laundry on overalls.....Jack.











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