PPF Tax Code Change
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stevecash
Posts: 6 Forumite
Does anyone know why the tax code showing on my P60 from the PPF for year ended 5 April 2024 shows 1097L? The tax code on my P60 from the PPF for year ended 5 April 2023 was 1256L and my circumstances haven't changed, so why would the tax code be different? And why would my tax code now appear to be less than the personal tax allowance of £12570? I anticipate putting this question to the PPF and wouldn't be surprised if they say I should ask HMRC, but thought I'd ask here first in case someone could enlighten me. If so, this could be useful to others too, since I doubt I am the only one to experience this(?). Thank you!
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stevecash said:Does anyone know why the tax code showing on my P60 from the PPF for year ended 5 April 2024 shows 1097L? The tax code on my P60 from the PPF for year ended 5 April 2023 was 1256L and my circumstances haven't changed, so why would the tax code be different? And why would my tax code now appear to be less than the personal tax allowance of £12570? I anticipate putting this question to the PPF and wouldn't be surprised if they say I should ask HMRC, but thought I'd ask here first in case someone could enlighten me. If so, this could be useful to others too, since I doubt I am the only one to experience this(?). Thank you!
But I would hazard a guess that you have received some untaxed interest and your spare tax code allowances have been (provisionally) used by this income. And your PPF pension is £10979 or less.
Or you owed some tax form an earlier tax year and there was a deduction included in your 2923-24 tax code. And your PPF pension was more than £12,570.0 -
Increase in State Pension implies increase in tax which is taken from your other income streams?
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stevecash said:Does anyone know why the tax code showing on my P60 from the PPF for year ended 5 April 2024 shows 1097L? The tax code on my P60 from the PPF for year ended 5 April 2023 was 1256L and my circumstances haven't changed, so why would the tax code be different? And why would my tax code now appear to be less than the personal tax allowance of £12570? I anticipate putting this question to the PPF and wouldn't be surprised if they say I should ask HMRC, but thought I'd ask here first in case someone could enlighten me. If so, this could be useful to others too, since I doubt I am the only one to experience this(?). Thank you!0
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It has nothing to do with PPF, they do as told by HMRC, PPF will have no knowledge as to why they have been told to use that code. HMRC would have sent you a letter about how they arrived at your code and the information will be available in your on line tax account. Does your income from the PPF come above that £10970 - do you pay tax on that income ?
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Increase in State Pension implies increase in tax which is taken from your other income streams?
A previous post from the OP https://forums.moneysavingexpert.com/discussion/comment/79838451/#Comment_79838451
Indicates that he won't reach SPA until 2026.
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and my circumstances haven't changedClearly something has.
My gut feeling is your state pension (as that does change once a year) and many people have moved from having a state pension below the personal allowance to one above the personal allowance.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
My gut feeling is your state pension (as that does change once a year) and many people have moved from having a state pension below the personal allowance to one above the personal allowance.
The OP's previous post dated 8/2/23
Thanks for the info. In my case (having checked with the Future Pension Service yesterday), there would only be a positive effect on my SP if I were to pay for recent years (cheapest being 20/21 @ £795.60 and 21/22 @ £800.80).This would bring my SP to about 2 quid short of the max weekly pension, so the benefit of my paying for a 3rd year at £ 824.20 would be marginal.
Seems to me that it would be worth my paying for 2 additional years, but I'll have to decide whether to action that now at a total cost of £1596.40 or to keep my money for now and still have the option to pay a bit more for 2 additional years at a later date (being 3 years away from SP age).0 -
Thanks to those who posted comments. Yes, I won't reach SPA until 2026. I have not received a letter from HMRC so it seems the best thing is for me to pursue with them for clarification. Depending on what sort of response I get I will post a further comment here if I think it appropriate and possibly of use to me or others in a similar position! Thanks again to those who took the time to comment.0
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Do you not have access to your on line tax account ?
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stevecash said:Thanks to those who posted comments. Yes, I won't reach SPA until 2026. I have not received a letter from HMRC so it seems the best thing is for me to pursue with them for clarification. Depending on what sort of response I get I will post a further comment here if I think it appropriate and possibly of use to me or others in a similar position! Thanks again to those who took the time to comment.
That way there is no waiting for hours for the phone to be answered by HMRC.
Has this tax code meant you have paid tax when you don't think you should have?
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