State Pension new Tax Code

TadleyBaggie

Presumably HMRC believe your State Pension payable 22/23 will be around £7500.

Suppers_Ready

TadleyBaggie said:

Presumably HMRC believe your State Pension payable 22/23 will be around £7500.

Yes it will be , how is the code calculated , thanks .

Dazed_and_C0nfused

Suppers_Ready said:

TadleyBaggie said:

Presumably HMRC believe your State Pension payable 22/23 will be around £7500.

Yes it will be , how is the code calculated , thanks .

You add all tax code allowance elements together.

Then add all tax code deduction elements together and deduct this amount from the allowances.

Thus gives you your tax code allowances.

And that is the main thing used to determine the tax code.

For example,

Personal Allowance £12,570 is the only "allowance" element.

State Pension of £7500 is the only "deduction" element.

12,570 - 7,500 = 5070

Tax code would be 507L