Savings allce

Silverbird65

Sorry meant to add GMP £124pm  interest £899. Got the pension wrong that's £889 per month., Will HMRC think we are up to something if we put annual figure in for work when he retires end of June? Just want it right before he leaves work they keep taking more each week in tax.
Thanks

Dazed_and_C0nfused

Silverbird65 said:

Sorry meant to add GMP £124pm  interest £899. Got the pension wrong that's £889 per month., Will HMRC think we are up to something if we put annual figure in for work when he retires end of June? Just want it right before he leaves work they keep taking more each week in tax.
Thanks

No, simply multiply his expected monthly wage by 12 and use that figure.

When it turns out he finishes work part way through the year you can change it to the total actually earned to when he finishes.

Things change during the year, nothing unusual in that at all.

Silverbird65

Thank you for your help. He has already changed it once to a lesser figure as he calculated April till retirement only 3months , that's were we went wrong , we will put a full year in and hope we don't end up behind bars for suspected 🤥

xylophone

You're trying to change something that isn't wrong, isn't causing a problem and won't cause a problem when his State Pension starts.

Oh no?

See https://forums.moneysavingexpert.com/discussion/comment/79585658/#Comment_79585658

and following posts.

Silverbird65

We changed the figure to a full years wages. £22308 we will then have to let them know when he retires end of June. To make sure they know he his no longer working. Is that correct? Why is it so complicated.?Thanks 👍

Dazed_and_C0nfused

Silverbird65 said:

We changed the figure to a full years wages. £22308 we will then have to let them know when he retires end of June. To make sure they know he his no longer working. Is that correct? Why is it so complicated.?Thanks 👍

You don't need to do that, his employer will file the equivalent of a P45 to notify HMRC they have stopped paying him.

Sometimes it's just simpler to go with the flow and not interfere.

Silverbird65

Well yes but he keeps getting taxed more each week so we just thought best put a full year in to get the tax code right. Thanks

Silverbird65

just to give update on tax code we change the details to a full years pay and ended up with tax code 1107l and 1492T on his small pension. So allces covered his pension but we got taxed more on his pay and the code wasnt changed to cover full year as suggested. Would have been better leaving things as they were, hope it all gets sorted when he retires in July. Might be better change things back. SO confounded with it all!!!!

sheramber

His personal  allowance is 12570.
his pension is 1492 which is covered by personal allowances  leaving 11078 personal allowances to set against his employment.

He is now on the correct code numbers.

Tax deducted from his employment will be more because he has extra income- his pension. Rather than take tax off both , splitting the personal allowance allows the pension to be paid without tax deducted from it and all tax due to be deducted from his employment income.

Silverbird65

The thing is he finishes end of June the starts SPen July. So his wage will on be 5300 to then should he put that figure or wait till retirement.?
Thanks