Mystery tax code
in Cutting tax
5 replies 167 views
in Cutting tax
Because my husband and I had so much income from ISAs (and PEPS back in the day), we had no taxable income for several years after we retired twenty-ish years ago, and we had a letter from the tax office saying that we need not file tax returns unless our circumstances changed. Now that the tax thresholds are frozen the situation may well change, and I would like some guidance on how to proceed. First and foremost is that I do not appear to have a recognisable tax reference. Can anyone enlighten me as to what 206/RAC402 on a letter from the tax office means? Apparently our old tax codes are no longer valid.
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But I'm not sure that that is relevant. What 'tax codes' are you referring to that are no longer valid.
Your UTR (Unique Taxpayer Reference) - if you have one - is a ten digit-number.
Other than a few standard codes like BR and D0 most tax codes just apply for a particular tax year and would be recalculated for each new tax year.
But a new code would only be calculated once someone (an employer or pension payer) notified HMRC that they had started to make taxable payments to you.
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