My Tax code:

Steve_P54

Hi 
I have contacted the HMRC regarding paying tax on my private pensions. I have just started to receive my state pension. I have noticed that I am being taxed on my private pensions. My wife has no income and asked about recieving her tax allowance as I believe I can. They said yes and have issued me a new tax code. My original tax code was 1250L . Which was fine which allowed me £12500 before paying tax. The new code is C639M what does this mean? It looks to me like I'm allowed less. Can someone enlighten me how it works?
Thanks

molerat

C is Wales

639 is 6390 tax free so I suspect ( 12500 + 1250 - 6390 = ) £7360 state pension.  The SP amount has to be deducted from your tax free allowance as it is taxable income but not taxed at source. (The assumed pension amount may not be correct depending on when you started receiving it as HMRC do some black magic calculating to come up with a tax code to try and collect the correct amount of tax in the remainder of the year but generally make a dog's dinner of it in the first part year and correct it in the next full year and get it right going forwards - I am paying £12 per month in extra tax this year to correct their poor calculations from my first part year SP)

M is receiving marriage allowance

xylophone

I have contacted the HMRC regarding paying tax on my private pensions. I have just started to receive my state pension. I have noticed that I am being taxed on my private pensions. My wife has no income and asked about recieving her tax allowance as I believe I can.

You can't receive your wife's tax allowance.

You may be eligible to make use of the  marriage allowance. https://www.litrg.org.uk/tax-guides/tax-basics/what-tax-allowances-am-i-entitled

You are now in receipt of a state pension - this is paid gross but is taxable.

Your state pension plus your private pensions give you an income higher than your personal allowance.

It seems that you have more than one private pension.

Presumably HMRC has coded one of your pensions C639M to take account of your state pension and the marriage allowance and your other pensions are coded BR?

Steve_P54

I believe that you can receive some of my wife's personal tax allowance that should enable me to pay less. Ill wait to receive the details via post from HMRC to see what they may have done.

xylophone

I believe that you can receive some of my wife's personal tax allowance that should enable me to pay less.

What is Marriage Allowance in link in my previous.

mgdavid

Your OP and the very first reply appear to explain that you're already receiving Marriage Allowance.

molerat

I believe OP thinks they should pay less tax due to receiving the marriage allowance but has not taken the effect of starting to receive the state pension into account.