Tax code 269L

Gig1968

Hi
I have just closed a claim on income related ESA due to retiring on I'll health and gaining a large lump sum and a monthly pension. I'm yet to receive the pension it started in November. I also receive PIp which will continue. On friday I received a letter saying my claim had been closed which I wanted and I had received £3k in ESA payments this year. Today I get some paperwork from HMRC saying my tac Code is 269L surely this cant be right. Any help.

sheramber

What does your notice of coding say about how the code number is arrived at?

Gig1968

It doesn't it's just some forms to pass on to my new employer with a code on it. It says if I dont pass them on I may be emergency taxed  One copy for me two for me, one for my new pension employer I guess I have no idea what's going on ESA is only £3k so far this year plus my pip so HMRC have gone nuts. I'm going through a process with another of my ex employers for I'll health and ESA plus those pensions for the rest of this year will not get me to the £12k under normal rules, but will if 269l is used. I wonder if they have included pip

Dazed_and_C0nfused

I think you have got confused.

If the paperwork was from HMRC then it would have the breakdown of how 269L was arrived at.  Are you sure it's not been sent by DWP?

Also your current tax code is likely to have been calculated several months ago before it was known you were stopping your claim for ESA.

Were you being paid by an employer and DWP at the same time?

You can check the breakdown of the code on your personal tax account on gov.uk.

The emergency tax code is 1257L, which means no tax is deducted from the first £1,048 taxable pay each month.

You don't need to give the P45 to the pension company if you don't want to.

chrisbur

This sounds like a P45 though that would be one copy for you Part 1A and two for your new employer parts 2 and 3.
If this is the case is there an X after the code or any pay and tax figures on part 2?
Do you know aprox level of payment you will get from new pension employer?

Gig1968

It is s P45 but had no financial values on it. There is not an X at all. I will be getting around 550 a month from one backdated to august. So roughly 5000. The other one from September 300 so roughly £2000 . Plus the 3000 ish I have had on ESA leaves me below level 

[Deleted User]

Gig1968 said:

It is s P45 but had no financial values on it. There is not an X at all. I will be getting around 550 a month from one backdated to august. So roughly 5000. The other one from September 300 so roughly £2000 . Plus the 3000 ish I have had on ESA leaves me below level 

There would be ‘financial values’ on the part 1A  only - no entries on parts 2 and 3. There has to be - the part 1A was introduced to assist with Self-assessment.

Gig1968

I guarantee their are no financial values in any of the boxes on any of the pages. They are all empty. I'm totally confused my only income is my ESA payments and my pip this year. I will call them on monday.

Dazed_and_C0nfused

I suspect that the P45 has been issued by DWP, not HMRC.

You would be better off in the short term just allowing the emergency tax code to be used by the company paying your new pension.

chrisbur

I am guessing that the P45 details are based on someone's estimate (possibly an over-estimate) of taxable income for the year from all sources other than this pension that you have been advised to give the P45 to.  Rather than use your tax code and taxable pay to date they have estimated a figure for taxable pay and used that to provide a reduced tax code.  I do recall a poster several years ago having a P45 like this. Whatever happens the tax you owe will be calculated on the correct taxable pay at the end of the tax year and any correction to tax paid will be made.
If you do not give in the P45 you may well be put onto the emergency tax code of 1257L but it is possible that you might be put onto 0T and pay 20% tax on all your pension.
I assume you intend to call HMRC, hopefully they will accept your estimate of taxable income and change the tax code to be used, but if the P45 originated from DWP which I think is likely they may refer you to them to adjust their estimate.  Either way I hope you are successful as it is always better to have the money in your pocket than have to wait for months after the tax year ends to get it. 

Gig1968

But surely DWP should only report on the P45 what I have earned through them. They had no information on the amount pension i was receiving each month.. The reason  for my closure of my ESA claim was due to my final salary lump sum being above the £16k savings limit for ESA income based benefit. I will contact them tomorrow, but things will get messy as I am going through a similar process with a second company to complete a second I'll health retirement. God only knows what will happen then.