Help understanding tax code...

cloud_dog

Thanks everyone for your comments.

Just to cover off ringing up HMRC, this is not feasible for my mother.  I may try to contact them myself but I have a feeling they will decline to progress without confirmation from my mother.

My mother has recently moved in to residential care and she has very straightforward tax affairs, and TBH previously I never gave it a second look, just assumed it was correct.  

We have set up my address (care of) for organisations, and I received a payment confirmation from CSP, which triggered the question.

I will dig back through paperwork to see if there is a recent tax coding notice.

Re income, it has just dawned on me that she also receives Attendance Allowance (basic); £243.70pm / £2924.40pa.

Including those numbers (assuming it is taxable income, need to google) I think the coding should be 190 or 200?

EDIT: A Google indicates that AA is not taxable income:
https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits 

jem16

cloud_dog said:

Re income, it has just dawned on me that she also receives Attendance Allowance (basic); £243.70pm / £2924.40pa.

As you’ve found out, AA is not taxable. However you’ve listed it as monthly when it is actually paid every 4 weeks so the annual amount would be higher. Have you done the same with her state pension?

cloud_dog

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

molerat

cloud_dog said:

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

That would bring it down to 177. (12570 - 10799 = 1771)

jem16

cloud_dog said:

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

As molerat has said it’s 177. 

Have you taken into account the new pension rate for this tax year or are you working off old figures?

Dazed_and_C0nfused

And don't forget any interest used in calculating her current tax code will normally be based on the actual interest received on the year to 5 April 2021.

So if she's having to deplete her savings in connection with the care home that won't be reflected yet at HMRC's end.

But the difference may be unrelated to interest.

cloud_dog

jem16 said:

cloud_dog said:

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

As molerat has said it’s 177. 

Have you taken into account the new pension rate for this tax year or are you working off old figures?

Again you may be correct, although I took it from the April payment for the calculation.

To keep life simple in the future, I think we might get mum a passport in order to register for a Personal Tax Account.

Thanks all 

jem16

cloud_dog said:

jem16 said:

cloud_dog said:

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

As molerat has said it’s 177. 

Have you taken into account the new pension rate for this tax year or are you working off old figures?

Again you may be correct, although I took it from the April payment for the calculation.

To keep life simple in the future, I think we might get mum a passport in order to register for a Personal Tax Account.

Thanks all 

If she’s paid every 4 weeks, the April payment will not be all at the new rate. 

sheramber

cloud_dog said:

jem16 said:

cloud_dog said:

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

As molerat has said it’s 177. 

Have you taken into account the new pension rate for this tax year or are you working off old figures?

Again you may be correct, although I took it from the April payment for the calculation.

To keep life simple in the future, I think we might get mum a passport in order to register for a Personal Tax Account.

Thanks all 

If this a first passport it requires an interview at a passport office.



Details here of how to register as a trusted helper. for HMRC

https://www.gov.uk/help-friends-family-tax

Register online as a ‘trusted helper’ to help a friend or relative:

• check they’re paying the right amount of Income Tax
• check or update their personal tax account
• claim a tax refund
• check or update their company car tax

The person you’re helping must then use the service to accept your registration. If they cannot go online, you may be able to call HM Revenue and Customs (HMRC) on their behalf.

You can be a trusted helper for up to 5 people.

p00hsticks

sheramber said:

cloud_dog said:

jem16 said:

cloud_dog said:

You know what, I probably have 

So that adds £830.75 to the SP making £10799.

By my reckoning the coding is still somewhere about £900 out, so should be around 250?

As molerat has said it’s 177. 

Have you taken into account the new pension rate for this tax year or are you working off old figures?

Again you may be correct, although I took it from the April payment for the calculation.

To keep life simple in the future, I think we might get mum a passport in order to register for a Personal Tax Account.

Thanks all 

If this a first passport it requires an interview at a passport office.

During the pandemic they were doing interviews over Skype - I'm not sure if they've gone back to face to face.

And as another poster pointed out when we were discussing the topic over on another thread recently, apparently if the applicant is over a certian age (70 ?) then they may well skip the interview part of the process unless there are any potential fraud flags.