Pensioners and tax

davidat19

I am 72 (73 next week) and have been working two or three days a week in a local department store.
I and my partner have basic state pensions. 
I pay no NI, but am being stopped income tax at between £15 and £25 per week....is this right?

davidat19

davidat19 said:

I am 72 (73 next week) and have been working two or three days a week in a local department store.
I and my partner have basic state pensions. 
I pay no NI, but am being stopped income tax at between £15 and £25 per week....is this right?

I should add that this is around 10% of my earnings.

Dazed_and_C0nfused

You will need to give details of your earnings and State Pension for anyone to know.

It may well be correct but maybe not.

Remember State Pension is paid weekly or 4 weekly not monthly.

Has your wife applied for Marriage Allowance.

sheramber

Your state pension is taxable but cannot be taxed at source so the tax due on your total income- pension and earning- is collected from your earnings,

If you want the amount checked you need to supply full details of state pension amount and earnings.

davidat19

It seems that my pension is around 8k, my allowance is c.12k, so my tax code is 439....so I can earn around 4 k before I owe tax...so far I have earned about 2,5k and they are taking tax on that basis....I got off my bum and found my old HMRC id, it seems I have answered my own question....aah well...something to do whilre I wait for Homefuels direct not to deliver the oil they have promised.....

chrisbur

davidat19 said:

It seems that my pension is around 8k, my allowance is c.12k, so my tax code is 439....so I can earn around 4 k before I owe tax...so far I have earned about 2,5k and they are taking tax on that basis....I got off my bum and found my old HMRC id, it seems I have answered my own question....aah well...something to do whilre I wait for Homefuels direct not to deliver the oil they have promised.....

Hopefully you have found the answer as on a code of 439 and taxable earnings of 2.5K so far this year You should not be paying any tax. 

davidat19

But the HMRC site implies that they do it on a week to week basis as if you will earn that throughout the tax year...but looking at it I think I will be bumping the allowance, hopefully if I don't get up to it they will refund it.

pjread

If it's due to 'lumpy' income (some pay days bigger than others) it should balance out over the tax year. 

if £15-25/week is around 10% of earnings, I guess you're earning £150-250 a week and so employment income for a tax year would be between £7.5-12.5k. 

Assume you only started recently from the question, but if that's the ongoing situation it should get sorted automatically this year but I'd expect to be paying some tax next tax year

davidat19

pjread said:

If it's due to 'lumpy' income (some pay days bigger than others) it should balance out over the tax year. 

if £15-25/week is around 10% of earnings, I guess you're earning £150-250 a week and so employment income for a tax year would be between £7.5-12.5k. 

Assume you only started recently from the question, but if that's the ongoing situation it should get sorted automatically this year but I'd expect to be paying some tax next tax year

Yes, only been working since late november, so it should sort itself...I am hoping for a refund if I dont hit that £4390 figure.

molerat

What tax code are they using on your payslips ?  Is there X or M1 or W1 after it ?

chrisbur

davidat19 said:

pjread said:

If it's due to 'lumpy' income (some pay days bigger than others) it should balance out over the tax year. 

if £15-25/week is around 10% of earnings, I guess you're earning £150-250 a week and so employment income for a tax year would be between £7.5-12.5k. 

Assume you only started recently from the question, but if that's the ongoing situation it should get sorted automatically this year but I'd expect to be paying some tax next tax year

Yes, only been working since late november, so it should sort itself...I am hoping for a refund if I dont hit that £4390 figure.

This definitely sounds like you are on a non-cumulative tax code as molerat suggests (X WI or even some abbreviation of non-cumulative, perhaps even an 0T code)  Also what is the tax code number if not 0 that appears on your payslip.
If you end the tax year paying the level of tax you are now you will be due a refund of some sort even if you go over £4390.