tax code can anyone help

pauline123456

my mother was taken ill 5 months back and as now had to retire , she as asked me to sort out all her tax affairs before switching from salary to pension income, I have just seen that she is on a K code and seen the amout of tax she as been paying is ridiculous , my mum is one of those people who doesn't challenge anything and trusts everyone.
After speaking too her she said she got a big tax bill out of the blue a year after taking phase retirement from the teachers pension , were she got 75% of her pension and dropped a day a week of work which she got a salary for . she had worked over her retirement age and was also getting her state pension.
Can some one explain the K989 0 Code she as been on for the last 7 yrs and if it is something we should see an accountant for . looking on google it says K codes are used if someone as too many perks ie Company car , she doesn't claim for anything and owns her own car , so I am confused as to why she is on a K code

[Deleted User]

Hi,


just a wee tidy up, easier to read, good luck.

pauline123456 wrote: »

My mother was taken ill 5 months back and has now had to retire.


She as asked me to sort out all her tax affairs before switching from salary to pension income.


I have just seen that she is on a K code and seen the amount of tax she as been paying is ridiculous, my mum is one of those people who doesn't challenge anything and trusts everyone.


After speaking to her she said she got a big tax bill out of the blue a year after taking phase retirement from the teachers pension, where she got 75% of her pension and dropped a day a week of work which she got a salary for, she had worked over her retirement age and was also getting her state pension.


Can someone explain the K989 0 Code she as been on for the last 7 years and if it is something we should see an accountant for.


Looking on google it says K codes are used if someone has too many perks ie Company car, she doesn't claim for anything and owns her own car, so I am confused as to why she is on a K code

pauline123456

anyone shed anymore light still a tad dark in here ,thanks

comeandgo

Does she get her state pension? Does she have any other pensions being paid to her. Does she have bank interest in excess of £1,000?

comeandgo

Sorry, read frugals edited version and I see she does have state pension. That is included in taxed income and tax codes adjusted for that.

You need to get onto her HMRC account and view the history. If her account not active, get her, or you, to set it up.

xylophone

It appears that your mother is receiving a state pension, a widow's pension, a couple of TPS pensions and an annuity? Is she also receiving savings and dividend interest outside ISA?

https://forums.moneysavingexpert.com/discussion/6047278/lta-sorry-this-will-look-stupid

She completes a self assessment form each year and receives a tax calculation?

https://www.gov.uk/employee-tax-codes/letters

Your mother might benefit from consulting a tax accountant if she is unsure of her position.

pauline123456

I am trying to get all her p60's as we speak, but looks like I will have to send off for a few.
she is an high earner not sure ow much but 100k+

pauline123456

could you explain what a K code is , going to book an appointment tomorrow and get to the bottom of this . shes buried her head in the sand for seven years

xylophone

Find an accountant with CTA qualification.

https://www.tax.org.uk/students-and-qualifications/cta-qualification

https://pilot-portal.tax.org.uk/utilities/ciot/find-a-member

Re K code see

https://paycircle.co.uk/support-article/k-tax-code/

Your mother's state pension is paid gross but is taxable so her code will be adjusted for this - she may also have underpaid tax in previous years. She is also receiving income from several sources.

There is also this to consider.

https://www.kirkrice.co.uk/blog/personal-allowance-do-i-have-to-lose-it-when-earning-over-100k/

It really does seem to be the case that qualified, professional advice should be obtained.

pauline123456

the last option would have been good , but just fund out and my mother head in the sand with things like that only just asked for help due to illness or she wouldn't have .
She should have got a finacial advisor years ago .we will be seeking advise off one and an accountant like you say