Could my tax code be wrong?

bavli

I noticed my tax code changed at the beginning of this tax year.

My tax code is now: 2462L.

My April gross pay was: £7,333.33
My May gross pay is: £7,333.33

My gross pay for the year should be £88,000 and I am hoping to pay £26,400 into my pension. My pension provider tops this up with 20% tax relief.

In April I paid £2,200 into my pension and in May I also paid £2,200 into my pension so £4,400 in total.

My payslip for May says;

Employee to-date totals;

Gross NIable: £10,266.66
Gross Taxable: £10,266.66

Employee tax: £1,397.73
Employee NI: £760.66
Employee pension: £4,400
Net pay: £8,108.

If it is incorrect, what should my tax code be? I would rather not have to claim back my extra 20% relief for my pension contributions via my tax return and I am hoping they are paying me this through my tax code, hence why it is strange but I cannot work out if it is correct or not. I don't have any savings all in ISA's and don't get any interest on my small amount of cash savings.

agrinnall

What does your P2 coding notice say? It will explain the basis on which your tax code has varied from the standard personal allowance. If yours is really 2462L then you have a massive personal allowance, over twice that of the standard amount, so there has to be a reason for that. It could well be tied in with your pension payment but that's not an area I know much about.

bavli

agrinnall wrote: »

What does your P2 coding notice say? It will explain the basis on which your tax code has varied from the standard personal allowance. If yours is really 2462L then you have a massive personal allowance, over twice that of the standard amount, so there has to be a reason for that. It could well be tied in with your pension payment but that's not an area I know much about.

I haven't had a coding notice since the code changed.

agrinnall

Ring HMRC and ask for it to be re-sent then, as I very much doubt if there isn't one at all.

xylophone

It seems that your tax code is high because the basic rate band has been extended to give you the tax relief on your pension contributions on a monthly basis, although by my calculations (although no expert) the code is still a little higher than one would have thought (2420L).

Are you entitled to other allowances?

Was your intention to make a gross pension contribution of £33,000?

Your NI seems a little low for your salary - is there a salary sacrifice element?

I haven't had a coding notice since the code changed.

You should have received one - contact HMRC.