I have a work pension & state pension & just checked my tax code 387L need help to understand please

Exotoxin1

And last year your pension was about £162.35 a week, or £8442 per year.
Tax Code would be based on £12570 minus £8442 = £4128 for a code of 413L.

So all looks correct this year and last.

Dazed_and_C0nfused

hilary51 said:

Dazed_and_C0nfused said:

hilary51 said:

I can’t find my tax account but if I remember it said something about my employer contracting us out for a short period I think it was in the 1970’s hence the reason for me not getting the full state pension. Thanks again for helping me understand x

Once you get into your account you need to look at the PAYE section for the current tax year and somewhere in there is a breakdown of how your code has been calculated.

Are you certain the £164.87 is the current tax years weekly amount?

Apologies for not replying sooner but we had a death in the family.

I registered with gov.uk  I entered all my details NI number dob etc got an ID number to sign in when I try to sign in with the details .. it’s asking for me to confirm my identity any TWO of the following they can ask questions about

1) current passport (don’t have a current one) 

2) credit reference questions such as date of first credit card or phone contract ( I’m 71 can’t remember that far back)

3) Northern Ireland Driving Licence (I have a driving license but I live in England, why ask for a Northern Ireland one? it’s stupid)

This is from the Pension Service dated 12/03/22 don’t know if this is any help :-
how your benefit is made up
basic state pension.                                                   £141.85
pre 97 additional state pension     £48.68
less contracted-out deduction of  £56.08
                                                          Total payable    £0.00 
Post 97 addition state pension.                                 £24.04
Graduated Retirement Benefit.                                  £1.49  

                                        The amount each week is. £167.38

Also

works pension slip payment date 01/04/2022 Tax Code 413L
works pension slip payment date 29/04/2022 Tax Code 387L 
so I’m actually getting less than I did before

This is all so confusing, do you think that my tax code is correct? & I should accept that they know what they are doing.

with grateful thanks for helping me.

Hilary

Based on everything you have posted yes, your tax code of 387L is correct.

hilary51

JGB1955 said:

Your state pension has increased by £2.51 per week w.e.f. 11 April, so you are receiving about £130 more per annum.  That £130 reduces the tax-free element of your occupational pension.  £8700 of your £12,570 allowance is taken up by your SP, leaving the £3870  (Code 387L) set against your other pension.

Thank You! so much JGB1955 now I understand how my tax code is calculated & that it is correct, thanks for explaining it succinctly.

much appreciation to everyone that answered my call for help what nice people you are helping me to understand how tax codes are calculated.

kind regards
Hilary

RG2015

@hilary51,

Glad your issue has been resolved.

I have received two state pension payments but have not have my PAYE tax code updated.

How and when were you informed of your new tax code and how long after your first payment was state pension tax deducted from your private pension?

molerat

RG2015 said:

@hilary51,

Glad your issue has been resolved.

I have received two state pension payments but have not have my PAYE tax code updated.

How and when were you informed of your new tax code and how long after your first payment was state pension tax deducted from your private pension?

The figures quoted by OP shows they are a pre 2016 retiree so unlikely they would remember the exact details !

RG2015

molerat said:

RG2015 said:

@hilary51,

Glad your issue has been resolved.

I have received two state pension payments but have not have my PAYE tax code updated.

How and when were you informed of your new tax code and how long after your first payment was state pension tax deducted from your private pension?

The figures quoted by OP shows they are a pre 2016 retiree so unlikely they would remember the exact details !

Thanks @molerat,

I missed that and was assuming that @hilary51 was a recent retiree.

@hilary51,

I think that HMRC were probably much more efficient when you started to draw down your state pension. I am trying to work out how long they are currently taking to update my income and PAYE details.