Non Coded Income

kat-bag

There have been a couple of threads on this forum about Non coded income but appears no-one knows what it is and has only raised it's ugly head on this last year's tax returns 2018-2019. Searching HMRC or googling the phrase brings zero results.

My husband (retired 5 years now) looking at his tax return summary online today finds 2 pensions noted which is correct - his government and his private pensions. Next to that is another box labelled Non Coded income??? We have no idea what this is and the amount is larger that the other two pensions put together. We have not received any other income since retirement.
Other people must now have received a similar item on their returns for 2018-2019 and are wondering too?
Contacting HMRC by phone is a useless exercise.

Dazed_and_confused

There is information about this in HMRCs manuals (if you were minded to look through them ).

But your post doesn't really make sense. What do you mean by 2018:19 returns? How have you filed a return for a tax year that hasn't even ended?

Or do you mean something else?

What impact do you think this entry, wherever it is, is having?

And has your husband ever completed a Self Assessment return?

kat-bag

I have been a member of this forum since 2006, not naive or stupid. " if you were minded to look ..." seems rather rude? As you have read the manual, as I have, perhaps you could explain it in English.
I didn't say the return had been completed and yes he has completed an online self assessment since it began.
Perhaps check yours online?
As we cannot post links on here this is what it says.

Your PAYE Income Tax
Summary for
6 April 2018 to 5th April 2019

Your income from private pensions
Name of pension groups
£ amount

Your Income from other sources:

State Pension
£ Amount

Non Coded Income
£ Amount

My question is why do we have this very large amount of non coded income when we have no other income???

xylophone

https://forums.moneysavingexpert.com/discussion/5958491/what-is-non-coded-income

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye12060

You indicate that your husband is in SA - has he given any indication as above?

You could PM Sparkie....https://forums.moneysavingexpert.com/member.php?u=2309350 - she might have obtained the information from the horse's mouth!:)

Dazed_and_confused

" if you were minded to look ..." seems rather rude?

Wasn't intended to be rude, more that most people really wouldn't want to spend an afternoon reading the government's internal guidance manuals!

There is more information here (amongst other places). It is presumably something your husband declared on his Self Assessment return in the past and has subsequently been carried forward year on year.

I would think all he needs to do is contact HMRC and ask them to update his records to reflect the latest return he has submitted.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye130035

polymaff

Coded income refers to those items handled via PAYE (pensions, salaries etc.). It comes from the term PAYE Code. Non-coded income refers to all the rest, e.g. taxable savings interest, dividends, etc.

Just to confuse the issue - when HMRC get to know of your non-coded income, they either collect the tax owed by sending you a bill, or by adjusting your PAYE code to collect the tax owed - a process called "coding out"

Incidentally, coded, non-coded and the idea of coding things out has been common terminology in the profession for some time. It is just that HMRC has gone public with the jargon now.


EDIT: Heaven knows where the guff on my Personal Tax Account comes from. I have - apparently - so much "Non Coded Income" that I'm due a big tax rebate on it.

Now think about that. Taxable Savings and Dividend Income is now paid gross so how on earth could there be any question of a tax rebate? It is a load of codswallop.

So don't think that you are being singled out for abuse.

badmemory

Please note that it is not HMRC's responsibility if they get your tax liability totally wrong - it is yours. Even if you owe no extra tax they can fine you for getting it wrong. So make sure when you tell them how wrong they are that you get it back from them in writing. They are no longer to be trusted!

Dazed_and_confused

The thing is no one who has posted here about non coded income has actually said it meant they paid the wrong amount of tax.

It just seems to an entry they don't recognise when they have looked at their Personal Tax Account.

Tiredofbeingstolenfrom

I too logged on and noticed a lovely large amount of non coded income, so I called and asked what it is. No answer was given apart from, oh well maybe it's some amount that's been carried over each year... So I said really because it's only magically appeared this last week. Does it interfere with my yearly tax free allowance? He said yes! So I asked why no details were included of where it came from. No answer but he offered to remove it for me, I agreed. Checked later and it wasn't removed. It will need to be done manually. Please watch out. I claim nothing mentioned above and only have one source of Paye income.

unholyangel

Tiredofbeingstolenfrom said:

I too logged on and noticed a lovely large amount of non coded income, so I called and asked what it is. No answer was given apart from, oh well maybe it's some amount that's been carried over each year... So I said really because it's only magically appeared this last week. Does it interfere with my yearly tax free allowance? He said yes! So I asked why no details were included of where it came from. No answer but he offered to remove it for me, I agreed. Checked later and it wasn't removed. It will need to be done manually. Please watch out. I claim nothing mentioned above and only have one source of Paye income.

If you checked later that same day it will still be there because their systems do not update in real time. Check again over the weekend. 

Dazed_and_C0nfused

Tiredofbeingstolenfrom said:

I too logged on and noticed a lovely large amount of non coded income, so I called and asked what it is. No answer was given apart from, oh well maybe it's some amount that's been carried over each year... So I said really because it's only magically appeared this last week. Does it interfere with my yearly tax free allowance? He said yes! So I asked why no details were included of where it came from. No answer but he offered to remove it for me, I agreed. Checked later and it wasn't removed. It will need to be done manually. Please watch out. I claim nothing mentioned above and only have one source of Paye income.

What was your tax code? 

Presumably you could tell yourself if it had impacted your Personal Allowance as that is shown in the make up of your tax code.  Was your Personal Allowance £12,500?