income tax on 2 incomes

janexxxoo

i have a small pension and a part time job. in 2018/2019 my tax allowance was split betwee the 2 incomes. for 2019/2020 hmrc have used all my tax free allowance from just my job.

does it make any difference?

00ec25

janexxxoo wrote: »

i have a small pension and a part time job. in 2018/2019 my tax allowance was split betwee the 2 incomes. for 2019/2020 hmrc have used all my tax free allowance from just my job.

does it make any difference?

difference to what

you pay tax on your total earnings.
a tax code is simply a means to collect some tax from something, not necessarily the correct tax from a combined total

lots of websites explain the mechanics of how tax works for 2 jobs:

https://www.reed.co.uk/career-advice/second-job-tax-how-much-will-i-have-to-pay/

https://www.moneyadviceservice.org.uk/en/articles/pay-and-tax-when-working-in-more-than-one-job

https://taxaid.org.uk/guides/information/issues-for-employees/employee/paye-with-two-jobspensions

http://www.thetaxguide.co.uk/how-will-second-job-be-taxed.html

janexxxoo

when i first recieved my pension hmrc advised they would to split the allowance - as it was better to do that. i dont know why but thats what they said and did

this year they have put the full allowance onto my job - i dont know why theyve changed it but this is what they have done

when i asked whats the difference - i meant does anyone knew why they split it originally, when theyve now put it all on the job. just wondrered.

MDMD

Tax is all about the detail. How much do you receive from each source of income? Do you get any other income?

Dazed_and_confused

It may simply be that HMRC estimate your income from each place, pension and job, to be different from the forthcoming tax year.

For example if they think your taxable wages will be £12,500 or more then this will usually mean you have to have a BR (basic rate) tax code at the pension.

janexxxoo

widowed parent allowance plus my salary is approx £13,000 my pension (from late husband) is approx £2;500 a year. i just wonder why after many years of hmrc splitting the tax they have now put it all on my salary

badmemory

Pension income is for life normally, earned income can stop at any time for many reasons. That is why it is best to use whatever part of your tax allowance you can put against your pension. If your pension is above your tax allowance then it is a no brainer!


ETA

just read your last post - because it is easier for them!

Browntoa

I have 2 tax codes , standard code for my pension and BR ( basic rate) for any other part time work.

My tax free allowance is used on my pension , everything else is basic rate