Help me out with new tax code

AnotherJoe

My wife's just received a new tax code notice "375T M1"


What does that mean?
She has a tiny pension payment, about £250/month plus withdraws £750/month in drawdown.
Not old enough for SP yet so thats her only income.


Thanks

unholyangel

Its this a second pension she has just started receiving this year?

Any other income (state pension?) at all?

davidwatts

unholyangel wrote: »

Any other income (state pension?) at all?

OP suggests not drawing SP.

Found this link that mentions T and M1 codes. Not sure if it will help.

Looking at that I'd infer she's just left a £100k + per year job! :eek:


https://www.lovemoney.com/guides/15060/how-to-check-youre-on-the-right-tax-code-2019

BoGoF

I would think HMRC are trying to split the tax free allowance between the 2 sources to ensure no tax will be paid.

Suggest she logs onto her personsl tax account and ensures estimates at each source are correct.

Dazed_and_confused

T tax codes are most commonly used when a second job or pension has some of the tax code allowances from the main job or pension allocated to it.

Use of the T suffix means the employer/pension payer won't automatically add any increase in the Personal Allowance when the next tax year starts. If the code was 375L any increase in the Personal Allowance would be duplicated, once at the main job/pension and again at the second job/pension.

As BoGoF says highly likely to be simply that HMRC are splitting the tax code between the two pensions.

M1 means the code is to be used on a non cumulative basis. The employer/pension payer will use this tax code going forwards and not take into account any payments earlier in the tax year which may have had a different tax code used.

AnotherJoe

BoGoF wrote: »

I would think HMRC are trying to split the tax free allowance between the 2 sources to ensure no tax will be paid.

Suggest she logs onto her personsl tax account and ensures estimates at each source are correct.

Thanks I'll do that.