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Question(s) about Form P55
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JohnB47 said:Albermarle said:JohnB47 said:OK, thanks. In that case, bearing in mind the small amounts, we'll just let it all come out in the wash and won't bother with the P55.
Just checking though - will this all happen automatically even though she doesn't submit a self assessment tax return?
Probably best to try and get this tax code changed to the correct one to stop it happening again. Normally by now she should have received her tax code notice for 24/25 . If so is it still the same ?
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I had my new tax code about three weeks ago.0
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It sounds like HMRC are in a mess if some tax codes haven't gone out yet. It's awfully close to next year. I expect it will all be worked out correctly in the end though. You can check online as somebody suggested, in case the delay is just the post, which is also a mess. (and all other public services, it seems like
)
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OK, I've just looked at her tax details online.
It says for the tax year ending April 2024, her code is 198LX and for the tax year beginning April 2024 it will be 108L.
Both codes are simply derived from her personal allowance (£12750) minus her state pension amount.
Under 'Income from Private Pensions' it says Hargreaves Lansdown, this year £200 and next year £200. Not a total for each year, you understand, just £200 in each column. (She started the monthly SIPP £200 drawdown in September 2023 and each payment has been taxed at source).
So the actual income, this tax year, from the SIPP hasn't been taken into account at all and they're assuming the same from next year.
With next years tax code of 108L, we expect to lower the monthly SIPP drawdown amount to £90 from the start of this tax year, to avoid tax (1080 ÷ 12).
What would you advise us to do? Just lower the SIPP drawdown with Hargreaves Lansdown and sit tight, or complete P55 as well? Thanks.0 -
The income columns should show the annual SIPP withdrawal amount, so 12 x the monthly take, and you should amend that income to the correct amount. The amount in that column is not really relevant though if that is her only income other than the SP as her remaining allowance will be allocated to that stream and tax will be deducted accordingly. The main thing is that the code should not have an X/M1/W1 suffix.
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JohnB47 said:
So the actual income, this tax year, from the SIPP hasn't been taken into account at all and they're assuming the same from next year.0 -
Thanks guys.
So, taking both of your comments, it looks like Hargreaves Lansdown will tell the tax office what the actual total SIPP drawdown has been this tax year and with next years tax code being 108L, all should be well for no tax to be taken off next years SIPP drawdown amounts of £90 per month?
We're talking small amounts here, so maybe I'll just let things take their course.0 -
HL will report every month / time they make a payment. 108 gives £90.75 tax free monthly.
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Thank you. I feel I'm being lured into asking this question but I'll bite.
Why does a tax code of 108 suggest £90.75 monthly rather than £90.00?0 -
A 108 code on PAYE monthly gives £1089 annually, so £90.75 monthly, covering allowances from £1080 to £1089.Paid weekly you would get £1089.40 tax free.1257 gives £12579.12 and £12579.84.And if your codes were split 1000 and 257 you would get £12588.12.So you can't say the taxman never gives you anything1
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