Help with Tax Code

2»

Comments

  • p00hsticks
    p00hsticks Posts: 12,754 Forumite
    First Post Name Dropper Photogenic First Anniversary
    That sounds right then - as others have pointed out the 'X' means that the code is applied on a non-cumulative basis, so will only apply for the part of the year in which you are actually receiving your state pension. 
  • Another way of looking at it - 

    henceforth you will be pay tax each month on 1/12 of your annual salary in addition to 1/12 of your annual state pension. 

    The tax due can only be deducted from your salary as there is no mechanism to deduct tax from the state pension.
  • BIGEYE
    BIGEYE Posts: 191 Forumite
    First Anniversary First Post Combo Breaker
    OK. Thanks everyone, I'm a lot clearer now.
Meet your Ambassadors

Categories

  • All Categories
  • 342.9K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235K Work, Benefits & Business
  • 607.7K Mortgages, Homes & Bills
  • 172.9K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards