What does non coded income mean??

tasticz

Sorry what does this mean? I checked my mothers tax account and it is showing non coded income?
https://imgur.com/SkO0EZp

Her income are as follows:
PAYE from her permanent job
Dividends
& Property income from February 2020

However, the number for non coded income doesn't seem to align exactly with either the dividends or property income?? The amount quoted is higher than dividends taken so far but less than total property income she will get in financial year 2020...

Also, any idea how it got there?

I thought only paye income would be shown on the paye income tax overview and the other two sources would be covered via self assessment?

[Deleted User]

Correct - but HMRC will try to put you in a position where the tax that you owe at the end of the year is as low as possible by making adjustments to your PAYE code at your employment. It is more likely to adjust for your property income than your dividends.

unholyangel

Non coded income is income that you have but either it cannot be collected or you do not want it collected via PAYE. 

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

When you say property income, is that the amount you have taken from her tax returns? Or are you just looking at how much the rent actually is? Have a look at her tax returns for previous years and see if it sheds any light. 

It's definitely not collecting any tax on it (estimate of 22212, tax code 1250L & estimated tax £1942, but they need to take it into account because it can affect calculations or eligibility for items that can be coded. 

Juliette100

I have two routes of earnings.  1) PAYE as I am on my employers payroll and bank interest. I have completed my 2019/20 SA as I have an easy finance set up and no other earnings from anything else:  allowance, childcare etc.  However when I go into my online account it shows £3,500 non coded income for 2020/2021.  I have the ability to remove this but wanted to check what this may be as I am inclined to say that this is incorrect and reduce the amount to 0.  My personal allowance on the same screen is showing 12k.  Does anyone know what falls under non coded income and if I reduce this to 0 - as I capture gross interest in my SA and all other tax is collect at source whether this is OK to do?   Juliette   

tasticz

Juliette100 said:

I have two routes of earnings.  1) PAYE as I am on my employers payroll and bank interest. I have completed my 2019/20 SA as I have an easy finance set up and no other earnings from anything else:  allowance, childcare etc.  However when I go into my online account it shows £3,500 non coded income for 2020/2021.  I have the ability to remove this but wanted to check what this may be as I am inclined to say that this is incorrect and reduce the amount to 0.  My personal allowance on the same screen is showing 12k.  Does anyone know what falls under non coded income and if I reduce this to 0 - as I capture gross interest in my SA and all other tax is collect at source whether this is OK to do?   Juliette   

I asked an accountant who told me that if non coded income is shown online then usually HMRC sends you a letter asking you to do a self-assessment. My mother has been doing self-assessment anyways as she needed to declare dividends, however, this year she received a pack from HMRC around first week of June saying to do self-assessment. 

I would just leave it as it is if I were you. We have left it as is as it will all be captured in SA.

tobyandoatch

Mt friend had non coded income on a second job and has still not found out what this means

uknick

tobyandoatch said:

Mt friend had non coded income on a second job and has still not found out what this means

Did they ask HMRC?