On Line Tax Accounts Now Showing 24-25 Tax Coding

jimmo

SiliconChip said:

I hit 66 in November and qualify for State Pension but I presume they won't reissue tax codes to take that into account until I actually claim it (which I intend to do as soon as I can, but they won't know that until it happens).

I hit 66 in November and qualify for State Pension but I presume they won't reissue tax codes to take that into account until I actually claim it (which I intend to do as soon as I can, but they won't know that until it happens).

That's right. They won't do anything about SP util DWP notify them.

jimmo

SiliconChip said:

One thing I have seen is that their estimates for untaxed interest are massively below what the real figures will be - for 2023-24 they've estimated £593, but it will be something in the region of £5,800, is it worth updating the figure now so that my tax codes take that into account before they come into effect in April or is it better to just wait until they have the figures submitted by the financial institutions and they issue updated codes later in the year, with any tax due being collected in the remaining months before April 2025?

That is up yo you. Some people are anxious to ensure their PAYE deductions are as accurate as possible. Others are content to regard an under deduction as an interest free loan and will wait until HMRC catches up. 

[Deleted User]

jimmo said:

molerat said:

For me anyway.   Trying to work out how they think my PS pension will pay less than last this year

FWIW I have 2 PS pensions and HMRC's figures suggest:
PS pension 1 will increase by 8.0%
PS pension 2 will increase by 9.3%
State pe4nsion will increase by 10.8%.
Tax deducted will increase by 14.3%.

At this stage and in my circumstances the State pension figure is the only important one and I am comfortable just waiting until I get the DWP notification in February.

Well done you. I imagine that there is some reason why you are receiving more than the 8.5% increase in state pension. 

https://commonslibrary.parliament.uk/the-triple-lock-how-will-state-pensions-be-uprated-in-future/

jimmo

[Deleted User] said:

jimmo said:

molerat said:

For me anyway.   Trying to work out how they think my PS pension will pay less than last this year

FWIW I have 2 PS pensions and HMRC's figures suggest:
PS pension 1 will increase by 8.0%
PS pension 2 will increase by 9.3%
State pe4nsion will increase by 10.8%.
Tax deducted will increase by 14.3%.

At this stage and in my circumstances the State pension figure is the only important one and I am comfortable just waiting until I get the DWP notification in February.

Well done you. I imagine that there is some reason why you are receiving more than the 8.5% increase in state pension. 

https://commonslibrary.parliament.uk/the-triple-lock-how-will-state-pensions-be-uprated-in-future/

Every year there is always a bit of jiggery-pokery in respect of pension rises  for those of us who were in "contracted out" employments.

E.g. In 2023 I got 15% on SP  but the PS Pension rise suffered accordingly. There was a fair bit of publicity about it at the time.

 

For now, I wouldn't be surprised if HMRC have got my SP rate right but equally ......

 

That's why I will sit back and wait for the DWP notification. Perhaps you have this to come when you reach SP age.

[Deleted User]

jimmo said:

[Deleted User] said:

jimmo said:

molerat said:

For me anyway.   Trying to work out how they think my PS pension will pay less than last this year

FWIW I have 2 PS pensions and HMRC's figures suggest:
PS pension 1 will increase by 8.0%
PS pension 2 will increase by 9.3%
State pe4nsion will increase by 10.8%.
Tax deducted will increase by 14.3%.

At this stage and in my circumstances the State pension figure is the only important one and I am comfortable just waiting until I get the DWP notification in February.

Well done you. I imagine that there is some reason why you are receiving more than the 8.5% increase in state pension. 

https://commonslibrary.parliament.uk/the-triple-lock-how-will-state-pensions-be-uprated-in-future/

Every year there is always a bit of jiggery-pokery in respect of pension rises  for those of us who were in "contracted out" employments.

E.g. In 2023 I got 15% on SP  but the PS Pension rise suffered accordingly. There was a fair bit of publicity about it at the time.

 

For now, I wouldn't be surprised if HMRC have got my SP rate right but equally ......

 

That's why I will sit back and wait for the DWP notification. Perhaps you have this to come when you reach SP age.

Bit off that yet but always looking out for my mother. Every little helps!

jimmo

jimmo said:

Every year there is always a bit of jiggery-pokery in respect of pension rises  for those of us who were in "contracted out" employments.

E.g. In 2023 I got 15% on SP  but the PS Pension rise suffered accordingly. There was a fair bit of publicity about it at the time.

 

This was one article I remember.
My state pension is going up by 16.6 PER CENT! Is this an error? | This is Money

notbritishgas

molerat said:

Sister in law now has a £175 negative tax free amount, full new state pension and gives her 10% away. A lot of people are going to see this.

MrsM is showing a dividend tax amount, probably about correct. Again I suspect a lot of people are gong to be hit with this one now with the allowance down to £500.   Do dividends get reported in a similar way to savings interest ?

I also wonder about dividends.
For many many years I have had dividend income from shares, always below £1000 and have never had any contact with HMRC until 2023/2024 when they included a figure of £1300 dividends in my coding notice. The real figure for 2022/2023 was £534. I altered it in my online tax account so no problem.
However I wondered how or why they suddenly invented that figure so I contacted my broker XO and they were adamant unlike banks they do not supply figures to HMRC.
So anyone any ideas.

Dazed_and_C0nfused

notbritishgas said:

molerat said:

Sister in law now has a £175 negative tax free amount, full new state pension and gives her 10% away. A lot of people are going to see this.

MrsM is showing a dividend tax amount, probably about correct. Again I suspect a lot of people are gong to be hit with this one now with the allowance down to £500.   Do dividends get reported in a similar way to savings interest ?

I also wonder about dividends.
For many many years I have had dividend income from shares, always below £1000 and have never had any contact with HMRC until 2023/2024 when they included a figure of £1300 dividends in my coding notice. The real figure for 2022/2023 was £534. I altered it in my online tax account so no problem.
However I wondered how or why they suddenly invented that figure so I contacted my broker XO and they were adamant unlike banks they do not supply figures to HMRC.
So anyone any ideas.

Highly likely to be an old figure which didn't have any impact when the dividend nil rate band was £2,000 or £5,000.

But once that dropped to £1,000 it was a factor.

In years gone by have you ever completed a Self Assessment return or form R40?

notbritishgas

Dazed_and_C0nfused said:

notbritishgas said:

molerat said:

Sister in law now has a £175 negative tax free amount, full new state pension and gives her 10% away. A lot of people are going to see this.

MrsM is showing a dividend tax amount, probably about correct. Again I suspect a lot of people are gong to be hit with this one now with the allowance down to £500.   Do dividends get reported in a similar way to savings interest ?

I also wonder about dividends.
For many many years I have had dividend income from shares, always below £1000 and have never had any contact with HMRC until 2023/2024 when they included a figure of £1300 dividends in my coding notice. The real figure for 2022/2023 was £534. I altered it in my online tax account so no problem.
However I wondered how or why they suddenly invented that figure so I contacted my broker XO and they were adamant unlike banks they do not supply figures to HMRC.
So anyone any ideas.

Highly likely to be an old figure which didn't have any impact when the dividend nil rate band was £2,000 or £5,000.

But once that dropped to £1,000 it was a factor.

In years gone by have you ever completed a Self Assessment return or form R40?

No never completed a SA.
cannot say for certain but highly doubtful that dividend receipts ever exceeded£1000.

jimmo

jimmo said:

molerat said:

For me anyway.   Trying to work out how they think my PS pension will pay less than last this year

FWIW I have 2 PS pensions and HMRC's figures suggest:
PS pension 1 will increase by 8.0%
PS pension 2 will increase by 9.3%
State pe4nsion will increase by 10.8%.
Tax deducted will increase by 14.3%.

At this stage and in my circumstances the State pension figure is the only important one and I am comfortable just waiting until I get the DWP notification in February.

Just got my SP increase letter from DWP and it confirms that HMRC have the correct figure.
So 10.8% for me.