Tax question . Help me make sense .

alfmurph

Both my wife and i are pensioners .We both have private pension's and oap . After rise in oap we were looking forward to a little more money but .
After tax man changed my wife's code she has went from 1170 pounds a month in her account down to 983 pounds . Tax free amount has changed from 1918 pounds to 1085 pounds .
Tax code is s96t . Changed from s1245t .
Her oap is up from 815 pounds to 884 pounds every four weeks  and her private pension is 1209 pounds monthly . So she is still around 187 pounds less 69 pounds down .
I think her tax last year was off but not a word from taxman . She was getting 1170 in her account . 
Any thoughts appreciated . We have written to tax man asking why code has changed .

Dazed_and_C0nfused

alfmurph said:

Both my wife and i are pensioners .We both have private pension's and oap . After rise in oap we were looking forward to a little more money but .
After tax man changed my wife's code she has went from 1170 pounds a month in her account down to 983 pounds . Tax free amount has changed from 1918 pounds to 1085 pounds .
Tax code is s96t . Changed from s1245t .
Her oap is up from 815 pounds to 884 pounds every four weeks  and her private pension is 1209 pounds monthly . So she is still around 187 pounds less 69 pounds down .
I think her tax last year was off but not a word from taxman . She was getting 1170 in her account . 
Any thoughts appreciated . We have written to tax man asking why code has changed .

For your wife the T at the end of the tax code means she is likely to have another source of income taxed under PAYE.  Or her tax records need updating if she had another source but this has ended.  There are other reasons why T is used but I think they are unlikely to apply to your wife.

S1245T seems a very unusual tax code if she was receiving £815 State Pension every 4 weeks from April 2023.

The new code S96T looks more accurate.  Tax code allowances 12,570 less State Pension 11502 = tax code allowances 1068.  Tax code S96T would be used where tax code allowances from 960 to 969 were available.

Is there another source of income?

alfmurph

The t in her code is because she has another private pension that pays her 150 pounds annually . So i left it out as it is practically nothing .

alfmurph

I am worried they have not been taking tax from her on private pension or oap .

Dazed_and_C0nfused

alfmurph said:

I am worried they have not been taking tax from her on private pension or oap .

What happened when you contacted HMRC about this last year?

https://forums.moneysavingexpert.com/discussion/6449765/pension-and-tax-question#latest

alfmurph

We also have money in bank but in isas .

sheramber

alfmurph said:

The t in her code is because she has another private pension that pays her 150 pounds annually . So i left it out as it is practically nothing .

But if affects her tax code. The 150 is deducted from her personal allowance so  it is paid without deduction
of tax.

State pension is always paid wIhout deduction of tax but is deducted from her personal allowance  ( as shown above by D % C ) as it is taxable income.