Help understanding tax code...

cloud_dog

Unfortunately, I seem to need some assistance in understanding my mother's tax code, as I just cannot seem to reconcile it.

Tax code:  159L

State Pension:  £9969
Other Pension: £7672

Interest (approx): £400
No other taxable income

I thought the tax code would be higher?

Unfortunately, we don't have the PoA registered with HMRC so I can't ring, and it is not possible to set up a Personal Tax Account (no passport / driving licence).

molerat

I assume the 159L is being used against the £7672 pension. The coding notice - have you got that ? - will show how the code is arrived at because on the face of it she should have a code of 260 so you need to find out what other deductions are being made and why.

[Deleted User]

Do the personal allowance is 12570 less state pension 9969 (there is no mechanism for collecting tax on state pension) less 400 to cover interest on savings which, to me, leaves 2201. That would equate to a tax code of 220L. Are no other deductions shown - perhaps an underpayment bring collected?

zagfles

Have they not sent a tax code notification in the post? Or your mother could ring them while you're there, they'll probably allow you to talk on her behalf if she initially talks to them and gives consent.

zagfles

[Deleted User] said:

Do the personal allowance is 12570 less state pension 9969 (there is no mechanism for collecting tax on state pension) less 400 to cover interest on savings which, to me, leaves 2201. That would equate to a tax code of 220L. Are no other deductions shown - perhaps an underpayment bring collected?

Shouldn't be any deduction for the interest, covered by the PSA/savings nil rate band. HMRC do (pointlessly) do it when earnings are below the PA but this is obviously not the case here with a tax code of 159L on an income of £7k+

[Deleted User]

zagfles said:

[Deleted User] said:

Do the personal allowance is 12570 less state pension 9969 (there is no mechanism for collecting tax on state pension) less 400 to cover interest on savings which, to me, leaves 2201. That would equate to a tax code of 220L. Are no other deductions shown - perhaps an underpayment bring collected?

Shouldn't be any deduction for the interest, covered by the PSA/savings nil rate band. HMRC do (pointlessly) do it when earnings are below the PA but this is obviously not the case here with a tax code of 159L on an income of £7k+

Yes - I know they do - I was trying to get to the bottom of the tax code. There must be an another deduction somewhere.

TheMilkmansDad

does it not show in the Government gateway PAYE info? Is she/you able to log in and se what the deductions are?

molerat

TheMilkmansDad said:

does it not show in the Government gateway PAYE info? Is she/you able to log in and se what the deductions are?

cloud_dog said:

 and it is not possible to set up a Personal Tax Account (no passport / driving licence).

....................................

TheMilkmansDad

molerat said:

TheMilkmansDad said:

does it not show in the Government gateway PAYE info? Is she/you able to log in and se what the deductions are?

cloud_dog said:

 and it is not possible to set up a Personal Tax Account (no passport / driving licence).

....................................

my bad 

Dazed_and_C0nfused

cloud_dog said:

Unfortunately, I seem to need some assistance in understanding my mother's tax code, as I just cannot seem to reconcile it.

Tax code:  159L

State Pension:  £9969
Other Pension: £7672

Interest (approx): £400
No other taxable income

I thought the tax code would be higher?

Unfortunately, we don't have the PoA registered with HMRC so I can't ring, and it is not possible to set up a Personal Tax Account (no passport / driving licence).

You don't need a PoA to phone about something relatively basic like this.

Providing she is willing to speak to the adviser first she should then be able to give authority for them to discuss this with you.

If the "other pension" has been in payment for a couple of years or more then the interest in unlikely to be the issue.

Is your State Pension figure definitely correct?  This is often misunderstood with payments thought to be monthly when they're actually weekly.

Maybe she owes tax for some reason?  Is she one of the people DWP have been making payments of State Pension arrears to?

sheramber

Your mother can give HMRC authority to speak to you . This would only apply for that phone call.

If you want a qick answer then she can speak first and then authorise them to speak to you.

She can write a letter authorising you to act on her behalf- similar to appointing an agent to act for you. This would apply until she cancelled it.