Help with Tax Code



  • p00hsticks
    p00hsticks Posts: 12,754 Forumite
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    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 Posts: 191 Forumite
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    OK. Thanks everyone, I'm a lot clearer now.
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