Under paying tax question

fly-catchers

Until my State Pension started in January I was on BR on one of my DB pensions and the personal allowance of 12570 applied to the other. Once the State Pension started in January with the first one off smaller payment in February they changed the tax code to 199L. The tax they took that month February was about a £100 more than I had worked out. As they were using the full state pension amount rather than the smaller £493 had been paid that month. On the HMRC app it showed that the new tax code for 24/25 would be 111L As on the HMRC app it was showing that my bigger DB was for a larger amount than I was going to get for the year 23/24 I put in the actual figure. However after I did that they have now changed the tax code for my next pay slip to 1053L. And are showing the tax code for 24/25 as 12L to  recover an underpayment of £197 from 23/24. What is the best way of checking if this correct? Or will it be adjusted eventually?

Flugelhorn

maybe best thing is to add up all the income and all the tax for the year and use an online calculator -  I use this one (but make sure you get the right year and tick the box for no NI )  https://www.thesalarycalculator.co.uk/

Dazed_and_C0nfused

fly-catchers said:

Until my State Pension started in January I was on BR on one of my DB pensions and the personal allowance of 12570 applied to the other. Once the State Pension started in January with the first one off smaller payment in February they changed the tax code to 199L. The tax they took that month February was about a £100 more than I had worked out. As they were using the full state pension amount rather than the smaller £493 had been paid that month. On the HMRC app it showed that the new tax code for 24/25 would be 111L As on the HMRC app it was showing that my bigger DB was for a larger amount than I was going to get for the year 23/24 I put in the actual figure. However after I did that they have now changed the tax code for my next pay slip to 1053L. And are showing the tax code for 24/25 as 12L to  recover an underpayment of £197 from 23/24. What is the best way of checking if this correct? Or will it be adjusted eventually?

The State Pension you are paid isn't relevant for tax purposes.

It is your entitlement that matters.

And in the first year HMRC always use the full annual amount if you are already a taxpayer.  That is normal and works accurately because the new code is operated on a non cumulative basis, i.e. only against each future payday, not retrospectively.

You appear to have meddled in something you don't really understand and have complicated things, creating a tax underpayment when none would have existed if you left well alone.

You need to post the details for each pension (taxable income and tax deducted to 5 April) plus the start date and weekly amount of State Pension to understand if there will be a £197 underpayment or not.

Dazed_and_C0nfused

Turns out it was explained to you by @molerat that the original code was likely to be correct back in February.

https://forums.moneysavingexpert.com/discussion/6509592/tax-after-state-pension-starts