Reduction in Tax Code for FY 22/23

AlD46

Help please.
I've just got a tax code notice through which shows my tax code being reduced from 1257 down to 1071. It says to refer to Note 2 which states, 'We have included this adjustment as you have more than one job or pension and we estimate some of your income is taxable at a higher rate'.
My circumstances are; Pension of 19,300 and salary of 32,000 = 51,300 pounds earnings pa.
I phoned and spoke to someone in the tax office and she was unable to clearly explain to me why I'll effectively have my take home Pension (my tax free allowance is all on my pension and not on my new earnings) reduced by around 30 pounds a month.
Can someone explain this to me? I'd have thought that for the small percentage of earnings above  the threshold I'd be taxed at 40% on?
Thanks in advance.

Dazed_and_C0nfused

The complication is that you aren't above the 40% threshold on either source of income.

So making you pay 40% on all of your salary would be excessive.

The solution is you pay 20% tax on your salary (BR tax code) and an adjustment is made to your main tax code (the pension) to collect the extra tax you need to pay.

This is good in theory but often doesn't work as your pension/taxable salary changes during the year.  The key thing is to check in say 6 months and provide HMRC with as accurate as possible estimate for what you think your P60's will show as your taxable pay from the pension and job.  That will allow your tax code to be as accurate as possible.