Split Tax Allowance

SuzieGirl

Hello

My Tax allowance is split between my pension and my employment.

Pension is 300T
Employment is 799T (out of interest, why isn't this 800T?)

My pension is actually only £2758 pa so doesn't this mean that I'm not getting my full tax allowance?

I think this may have been happening for several years now but I've only just noticed. I'll need to check but can I claim this back for past years? Also, should I just let the tax office know each year what my actual pension will be so that they can adjust my tax code for both incomes?

Thanks for any advice. It's probably only a relatively small amount of money but better in my pocket than the tax man!

Dazed_and_confused

Are you paying any tax, now or previous tax year?

You can check now why your code is 799T on your personal tax account (gov.uk).

molerat

When splitting codes they normally drop 1 point each off the 2nd on as you actually receive and extra £9 tax free each year and if the tax codes were a correct number split you would receive an extra £9 tax free from each employment.

You can enter your incomes on the web site and it should correct your tax code allocation accordingly. Do you pay tax on the other income ?

SuzieGirl

Dazed_and_confused wrote: »

Are you paying any tax, now or previous tax year?

You can check now why your code is 799T on your personal tax account (gov.uk).

Thank you for your reply.

Yes I've been paying tax all my life! I'm not overly concerned about the 799T tax code but as the personal allowance is £11000, I was just curious about it.

My main question is about my pension tax code being 300T when my income from that is only £2758. I'm concerned that it means I'm losing £242 of my personal allowance.

SuzieGirl

molerat wrote: »

When splitting codes they normally drop 1 point each off the 2nd on as you actually receive and extra £9 tax free each year and if the tax codes were a correct number split you would receive an extra £9 tax free from each employment.

You can enter your incomes on the web site and it should correct your tax code allocation accordingly. Do you pay tax on the other income ?

Thanks for your reply

I do pay tax on my other income which is why I'm concerned that I'm losing £242 of my personal allowance. As my main income is from my employment, it would be a lot easier if all my allowance was applied there but, apparently, when you get a pension, that is always considered your main income.

How come you'd get an extra £9 tax free if an exact split is applied? I don't understand! :huh:

molerat

The £9 comes from the way the tax tables work and each split will give that extra amount.

Either phone the tax office and get it sorted or go on line and input your expected earnings from each source and it should correct it.