TAX CODE HELP PLEASE.

CountDrakma

Could someone help to explain an alteration to my Tax Code please. Even referring to the notes on the reverse of the Tax Code Notice doesn't clarify things for me:

At the start of the Tax Year 2022/23 my total Tax code was £13830. £12936 (M) of this was allocated to a long standing works pension I still receive. The remaining £894 (T) was allocated to what was my employment at that time so total tax free amount for 22/23 was £13830.
On 1st November '22 I resigned my employment and elected to draw down the pension I had accumulated in its scheme. This pension, being paid monthly, is much less than what I'd earned in my employment.
I've recently received a revised Tax Code Notice. It gives the Total Tax Free amount of £13830 ( i.e. just as before) with £12936(M) ( just as before) allocated to my earlier works pension. However, unlike before, HMRC tell me that £0 of my new pension income is tax free and I've been given a BR Code against this, instead of the expected £894 (T) as before. I don't understand this, especially as at the foot of the Notice it says "This totals your tax free amount £13830. 
Presumably had I continued my employment the £894 would also have continued to be applied, so why is it not applied to my new pension which only replaces ( and to a much lesser extent) the income I'd earned from my job?
The explanatory notes don't clear this up. All they say is the BR code means all my income from my (second) pension is taxed at 20% ( yes I know). Note 5 refers to "Income Now Ended" and "There is a difference between your total tax-free amount for the year and the amount allocated to your current employment/pension income. This difference is the amount that was allocated to employment that has ceased this year and is therefore not displayed on this form" That doesn't classify matters for me either!

Sorry if I'm being thick here but an idiot proof explanation would help! Thank you.

molerat

Did you give the P45 from your employer to the pension provider ?   That would have ensured continuity of that code.  Speak to HMRC and they will sort it out.

[Deleted User]

CountDrakma said:

Could someone help to explain an alteration to my Tax Code please. Even referring to the notes on the reverse of the Tax Code Notice doesn't clarify things for me:

At the start of the Tax Year 2022/23 my total Tax code was £13830. £12936 (M) of this was allocated to a long standing works pension I still receive. The remaining £894 (T) was allocated to what was my employment at that time so total tax free amount for 22/23 was £13830.
On 1st November '22 I resigned my employment and elected to draw down the pension I had accumulated in its scheme. This pension, being paid monthly, is much less than what I'd earned in my employment.
I've recently received a revised Tax Code Notice. It gives the Total Tax Free amount of £13830 ( i.e. just as before) with £12936(M) ( just as before) allocated to my earlier works pension. However, unlike before, HMRC tell me that £0 of my new pension income is tax free and I've been given a BR Code against this, instead of the expected £894 (T) as before. I don't understand this, especially as at the foot of the Notice it says "This totals your tax free amount £13830. 
Presumably had I continued my employment the £894 would also have continued to be applied, so why is it not applied to my new pension which only replaces ( and to a much lesser extent) the income I'd earned from my job?
The explanatory notes don't clear this up. All they say is the BR code means all my income from my (second) pension is taxed at 20% ( yes I know). Note 5 refers to "Income Now Ended" and "There is a difference between your total tax-free amount for the year and the amount allocated to your current employment/pension income. This difference is the amount that was allocated to employment that has ceased this year and is therefore not displayed on this form" That doesn't classify matters for me either!

Sorry if I'm being thick here but an idiot proof explanation would help! Thank you.

Not for the thousandth time it appears that HMRC still believe that you are still working in the job. Probably quickest to give them a call, close to 8am is best.

CountDrakma

Thanks molerat and purdyoaten2.
My new pension is a public service pension (Local Government Pension Scheme). There is nothing on my P45 to instruct me to forward my P45 to my pension provider. In any case my local LGPS office emailed me a while ago to say (quote) "HMRC is automatically informed by our payroll department that your pension has come into payment. HMRC should then send us through the correct tax code to apply to your pension". Now having received my revised tax code it looks like HMRC have indeed received info that my pension has come into force so I'm puzzled why they've applied a BR code and not the portion of my tax allowance that I had before.
Think I'll contact the pension people and HMRC. I was loathe to contact HMRC straight away as I've heard many horror stories about them. Do they even answer their phones?
Cheers anyway.

Dazed_and_C0nfused

Could it simply be that your new pension was notified before your employer notified HMRC that you ceased employment?

In that situation a basic rate tax code would most likely be correct.

Does you Personal Tax Account show that HMRC have now received the leaver details for your employment?

CountDrakma

Thanks Dazed........
Mmmmm I suppose my new pension may have been notified prior to my leaving notice. Never thought of that. I've already emailed my pension people about it all.
Personal Tax Account? Can I view that via the Gateway portal?

Dazed_and_C0nfused

CountDrakma said:

Thanks Dazed........
Mmmmm I suppose my new pension may have been notified prior to my leaving notice. Never thought of that. I've already emailed my pension people about it all.
Personal Tax Account? Can I view that via the Gateway portal?

Via gov.uk here,

https://www.gov.uk/personal-tax-account

It could well just be a timing issue.