tax code split between company pension and ESA contribution based support group payment

freefee

hi. first post, so please be kind, not sure where to post this, hope this is OK
i have been in receipt of a company pension since 2014, did not hit the £85 disregard rate until a few years ago, my weekly pension is £94.90 or £411.25 pcm, giving me an annual income of £4935, by my calculation, and my tax code is 598L i am also in receipt of contribution based ESA support group payments of £124.55 a week after half of my pension over £85 a week is taken off. my ESA tax code is BR i worked out my esa IS 6476.6  a year, so the 2 added together comes to £11.411.6, well below the tax threshold, is this the way it should be or do i need 2 tax codes? any advice very much appreciated, thanks

freefee

sorry, meant to add that neither income has yet paid any tax

freefee

sorry again. i also receive PIP enhanced on both elements, but i know this is not taxable, sorry

freefee

started getting company pension when i turned 50, still in 50's so not state pension age and this is all my income in total, sorry to be a pain, not great on computers

freefee

posted on a different forum and someone kindly put a link up for here, so the first post is just my previous post copied and pasted and put here, not great at things like this, been on esa and pip under different names, incapacity benefit and DLA. i inform dwp each year of pension increase and presume they  sort it out

eskbanker

freefee said:

sorry, meant to add that neither income has yet paid any tax

This is the key thing - the sole purpose of tax codes is to try to ensure that any tax due is collected via PAYE, but if no income tax is due and none is being collected then there shouldn't be anything to be concerned about?

[Deleted User]

eskbanker said:

freefee said:

sorry, meant to add that neither income has yet paid any tax

This is the key thing - the sole purpose of tax codes is to try to ensure that any tax due is collected via PAYE, but if no income tax is due and none is being collected then there shouldn't be anything to be concerned about?

The BR code is confusing though.

freefee

just checked 2023 statement, it is titled, certificate of pay and taxable benefit and tax deducted, it says final tax code BR with a X  in a box to the right of it, it seems to be a P6OU issued by the BA/DSS

freefee

the last time it was a tax code was to 5th april 2018 has been BR  since then?

freefee

tax code for ESA in 2018 was 738L