Emergency tax code 197L W1/M1

Cressida100

I am 66 and still working at the moment. I received my first state pension payment on 17 January. My January salary payslip is showing an emergency tax code of 197L W1/M1.

It was previously 1257L as I fall in the 20% tax bracket. Will this emergency code get sorted automatically or should I be contacting HMRC? 

Just to add my tax-free amount is showing on my tax code notice 6 April 2024- to 5 April 2025 as follows:

Salary  £1085 of this income is tax free  108L

Pension 1 £0 of this income is tax-free

Pension 2 £0 of this income is tax-free

This totals your tax-free amount £1085.

Employer uses salary sacrifice scheme and I am currently paying 42% into my dc works pension (L&G) employer pays 12.5% and have reduced my hours to stay within 1257L.

Thanks for any advice. 

Dazed_and_C0nfused

1257L is the emergency tax code, not 197L.

Could you explain why you think 197L might be wrong and what you think there is to sort out?

Given you are now presumably entitled to £815.40 every 4 weeks from DWP, with no tax being deducted at source, 197L (on a non cumulative basis) looks pretty accurate to me.

molerat

The reduction from 1257 to 197M1 means that £883.34 more is taxed each month, £2650.02 over the three months Jan, Feb & Mar which is the equivalent of 13 weeks of £203.85.  If the code had been cumulative, without the M1, that would have been a whole different story.

Cressida100

molerat said:

The reduction from 1257 to 197 means that £883.34 more is taxed each month, £2650.02 over the three months Jan, Feb & Mar which is the equivalent of 13 weeks of £203.85.

Thank you for the clear explanation, I understand now.