Tax code query when combined earnings are over 100k

Mick70

Hi All,
for the first time my combined earnings will be above £100k, and will be in future years hopefully.
I do self assessment.
long story , but I will be receiving a salary approx 80k ,  and a pension of approx 30k  - so combined 110k.
When i check my tax codes for next year -
My pension has been given a 40% tax code, no issue there.
However my salary is showing as giving me the full personal allowance ?   Now I thought with them combined being over 100k the allowance would be possibly halfed ?
I rang hmrc to query it as dont want a hefty tax bill whenever do  my return and i'm reasonably honest .
The hmrc guy said the allowance only applies to the main entity, in this case , my salary 80k and as the second entity (pension) is being taxed fully at 40% then it is correct.
This seems slightly odd to me and i'm unsure if correct or not .

That would suggest if i had just the one salary and it was 110k I would be paying more tax as would much of that personal allowance 

does anyone know for sure ?

thanks
mick

[Deleted User]

HMRC guy is talking rubbish. ‘The allowance only applies to the main entity’ - Wow!

On an income of 110000 your personal allowance should be restricted by 5000 to 7570. So, as it stands you will be underpaid by around 2000 every year.

Point them to their own internal manual at PAYE1110 as below - scroll down to personal allowance.

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


The definition of Adjusted Net Income is here - note it refers to taxable income (from whatever source)

https://www.gov.uk/guidance/adjusted-net-income

Mick70

He seemed confident also 😂😂