BR M1 Tax Code

molerat

nxdmsandkaskdjaqd said:

molerat said:

Surely 1257LM1 but totally confused as OP said they paid £266 tax which is not the correct amount for either 1257LM1 or BR which would have been £390.20 or £600.

Yes I agree the amount of tax paid is incorrect.  However, I should have paid no tax, and will do once this all gets sorted.

What code did they use ?

nxdmsandkaskdjaqd

molerat said:

What code did they use ?

Tax Code: 302L M1

molerat

So you had already taken an amount from the pension in a previous year so a code had been allocated, PA - SP = £3020 ish ?

The BRM1 code has now been allocated because you have reclaimed the tax deducted so that income needs to be deducted from your allowance.

But it is all of no real relevance if you are not going to take any more income.

Next year your code should revert to 12570 - SP.

nxdmsandkaskdjaqd

molerat said:

So you had already taken an amount from the pension in a previous year so a code had been allocated, PA - SP = £3020 ish ?

The BRM1 code has now been allocated because you have reclaimed the tax deducted so that income needs to be deducted from your allowance.

But it is all of no real relevance if you are not going to take any more income.

Next year your code should revert to 12570 - SP.

No, its my first year of State Pension and SIPP.  So haven't got a clue as to whats right.