Mystery tax code

6 Posts
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 Apparently our old tax codes are no longer valid.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 What 'tax codes' are you referring to that are no longer valid.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.
The best time to phone is first thing when lines open so you are at the front of the queue.
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees