Non-Coded Income - Help?

UtopiaNomad

Just submitted my self-assesment for a capital gains in 20-21, logged into my HMRC account today to see if it went though and it did but noticed in PAYE a Non-Coded Income for 21/22!

Also my tax-code has changed to L1257

I did get some Vanguard dividends in my general account in this tax year but the amount isn't correct and I submit those on my self-assessment yearly and I am not a high earner or anything so not sure what happened?

Any advice?

Dazed_and_C0nfused

So what impact has the non coded income had on you?

What was your tax code before?

Why do you think 1257L may be incorrect?

UtopiaNomad

Dazed_and_C0nfused said:

So what impact has the non coded income had on you?

What was your tax code before?

Why do you think 1257L may be incorrect?

Sorry I meant it was 1157L now it's changed to 1257 again the correct one, I asked on live chat but they said they can remove it? but they claimed it was from a savings account but I don't have one anymore, I think it's my dividends from Vanguard screwing it up but I submit self-assesment so it should straighten it out right?

Dazed_and_C0nfused

Not sure what you think has actually gone wrong?

But yes, ultimately if you file a Self Assessment return then that is what establishes your actual tax liability.  

UtopiaNomad

Dazed_and_C0nfused said:

Not sure what you think has actually gone wrong?

But yes, ultimately if you file a Self Assessment return then that is what establishes your actual tax liability.  

I had 7k in Vanguard divs but the HMRC agent in the live chat told me the money was 2900 or so from a "savings account", she didn't really know.

I'll just submit a self assessment I guess.

Dazed_and_C0nfused

Still not sure what you think is wrong?

Non coded income tends to relate to items you have declared on your Self Assessment return which you don't want including in your tax code but must be taken into account when calculating things like entitlement to Personal Allowance.

For example if you had earnings of say £90k and non coded income of £15k then your Personal Allowance would be reduced slightly to reflect your adjusted net income was over £100k.

For most people it makes no difference and that would appear to be the case here.  You haven't actually said what you think is wrong with your tax code.  If nothing is wrong with it why do you think the non coded income entry is wrong?

UtopiaNomad

Dazed_and_C0nfused said:

Still not sure what you think is wrong?

Non coded income tends to relate to items you have declared on your Self Assessment return which you don't want including in your tax code but must be taken into account when calculating things like entitlement to Personal Allowance.

For example if you had earnings of say £90k and non coded income of £15k then your Personal Allowance would be reduced slightly to reflect your adjusted net income was over £100k.

For most people it makes no difference and that would appear to be the case here.  You haven't actually said what you think is wrong with your tax code.  If nothing is wrong with it why do you think the non coded income entry is wrong?

Ok i'll explain it more simple.

My 2021/22 Paye stated I had 3000 in Non-Coded Income

I had 7k in vanguard dividends.

I earn around 8-9k yearly from my part-time job.

Why did it say 3k non-coded when it is 7k in dividends?

I'll submit a 2021/22 self-assesment anyway but it is confusing sorry it's hard to explain.

Dead_keen

Is it a fudged figure to deal with the difference between the 7.5% dividend tax rate and the 20% income tax rate on employment income (£7k x 7.5% / 20%).

UtopiaNomad

Dead_keen said:

Is it a fudged figure to deal with the difference between the 7.5% dividend tax rate and the 20% income tax rate on employment income (£7k x 7.5% / 20%).

Not sure to be honest, you think if I just submit a self-assessment at the end of this tax year it'll clear itself up? I plan to use an accountant so I won't fudge it it.

Dead_keen

UtopiaNomad said:

if I just submit a self-assessment at the end of this tax year it'll clear itself up? 

Yes, it will.    

Dazed_and_C0nfused

To understand the £3, 000 amount you would need to know from which tax return it was from and possibly all other entries on the return. 

But I cannot see what relevance this has to the current tax year or what the concern is? 

You are now on the emergency tax code (1257L) which is what the vast majority of people are on.  The non coded income dies not appear to have had any impact on tax code whatsoever. 

A tax code is a provisional attempt to collect the tax due but it's the Self Assessment return (when one is required) that finalises things for the year.