BL**DY TAX MAN

Peter-Pan_5

My wife stopped working in July small pension £85

month taxed £21 off it can this be right???no other

income,she is 56. her Tax code number is BR what does

that mean,is she not due a tax rebate.

Rafter

Unusual tax code? Should be some numbers too - might be a temporary one?

If she gets a state pension there still maybe a small tax bill on the private one.

She has probably overpaid tax from her salary for the first part of the year though from 6 April 2004. Call the tax office and explain the situation - they will then fix the tax code to make sure she pays the right tax for the rest of the tax year to 5 April 2005 and then set it right for the year after too.

Unless you tell the tax man what is going on it is a bit unfair cursing him - he isn't psychic. He will correct the mistake (they are obliged by law to make sure nobody pays too much tax) but if you tell him now the mistake can be corrected faster.

Good luck.

R

Unbelievable_2

BR tax code means tax is deducted at Basic Rate of 22%.

Reaper's right - get in touch with her tax office and they will sort it out.

Oops - sorry I mean Rafter, not Reaper :-[

dunstonh

If you retire, you need to let the inland revenue know what the new income is going to be. Only at state retirement age do they usually send out a form asking what pension income will be.

The IR would sort it eventually but would need the tax year to finish and then some time in the next two years they would correct it.

Peter-Pan_5

Thanks to everyone for all your help,we thought her

pension providers[Capita} would tell the "tax man" .

dunstonh

Thanks to everyone for all your help,we thought her  

pension providers[Capita} would tell the "tax man" .

In many cases the pension provider would ask for the P45 or supply an IR form if non tax payer. However, it shouldnt be relied upon.

deemy2004

My wife stopped working in July small pension £85
income,she is 56. her  Tax code number is BR what does
that mean,is she not due a tax rebate.

Further clarification BR means that shes not getting her tax free allowance, this is usually due to your wife not clarifying her earnings to the Inland Revenue. Maybe she ignored a letter ?

She needs to go down to your local office and clarify her exact earnings for the current tax year and then they will adjust the tax code / refund overpayment

If she does nothing the code BR will remain for EVER !

dunstonh

Further clarification BR means that shes not getting her tax free allowance, this is usually due to your wife not clarifying her earnings to the Inland Revenue. Maybe she ignored a letter ?

She needs to go down to your local office and clarify her exact earnings for the current tax year and then they will adjust the tax code / refund overpayment

If she does nothing the code BR will remain for EVER !

Not strictly true.

BR is also used on additional income where the tax code is allocated to a different income.

There is no need to go to the tax office as there is a form for this specific purpose that the IR will send.

Peter-Pan_5

Sorry to any Tax ghuys in here, Mrs D took your advice

and rang the IR,they are going to issue a new code

number and they said she can apply for a rebate at the

end of the tax year.

dunstonh

If a new code is issued during the tax year, it will automatically correct itself between now and the end of the tax year. That is of course assuming they issue the correct code.

robnye

If a new code is issued during the tax year, it will automatically correct itself between now and the end of the tax year.  That is of course assuming they issue the correct code.

the amount of tax to pay is recaculated every month, so that an overpayment one month, would be corrected by a lower tax payment the following month