Can this tax code be correct?

The_Bookman

Good morning,

Apologies if this should be elsewhere, but the Tax Code Checker forum seems to be somewhat defunct.

My wife is a 69 year old retired nurse, in receipt of the state pension and a small (£5k) NHS pension. Having finally managed to get her a GovGatewayID and checked her account, it seems that her tax code is 70L.

Whilst the numbers appear to be correct, I don't understand why she isn't simply 1257L like most of the population.

All thoughts gratefully received, more details available if it would help, thanks in anticipation.

unforeseen

State pensions are paid gross but taxable. The majority of the tax allowance is used up by the state pension leaving around £700 as the allowance for other income. Hence the 70L code.

Dazed_and_C0nfused

The_Bookman said:

Good morning,

Apologies if this should be elsewhere, but the Tax Code Checker forum seems to be somewhat defunct.

My wife is a 69 year old retired nurse, in receipt of the state pension and a small (£5k) NHS pension. Having finally managed to get her a GovGatewayID and checked her account, it seems that her tax code is 70L.

Whilst the numbers appear to be correct, I don't understand why she isn't simply 1257L like most of the population.

All thoughts gratefully received, more details available if it would help, thanks in anticipation.

If it was 1257L how would she pay the tax due on her overall pension income 🤔

Is her State Pension ~£11,870?

The_Bookman

Dazed_and_C0nfused said:

The_Bookman said:

Good morning,

Apologies if this should be elsewhere, but the Tax Code Checker forum seems to be somewhat defunct.

My wife is a 69 year old retired nurse, in receipt of the state pension and a small (£5k) NHS pension. Having finally managed to get her a GovGatewayID and checked her account, it seems that her tax code is 70L.

Whilst the numbers appear to be correct, I don't understand why she isn't simply 1257L like most of the population.

All thoughts gratefully received, more details available if it would help, thanks in anticipation.

If it was 1257L how would she pay the tax due on her overall pension income 🤔

Is her State Pension ~£11,870?

£11,888. Thanks for the response.

The_Bookman

unforeseen said:

State pensions are paid gross but taxable. The majority of the tax allowance is used up by the state pension leaving around £700 as the allowance for other income. Hence the 70L code.

That makes sense - thank you.

Dazed_and_C0nfused

The_Bookman said:

Dazed_and_C0nfused said:

The_Bookman said:

Good morning,

Apologies if this should be elsewhere, but the Tax Code Checker forum seems to be somewhat defunct.

My wife is a 69 year old retired nurse, in receipt of the state pension and a small (£5k) NHS pension. Having finally managed to get her a GovGatewayID and checked her account, it seems that her tax code is 70L.

Whilst the numbers appear to be correct, I don't understand why she isn't simply 1257L like most of the population.

All thoughts gratefully received, more details available if it would help, thanks in anticipation.

If it was 1257L how would she pay the tax due on her overall pension income 🤔

Is her State Pension ~£11,870?

£11,888. Thanks for the response.

So £12,570 less £11,888 is £682 tax code allowances.

But as a recipient of the "new" State Pension her tax code will include 51 weeks of this years State Pension rate and 1 week of last year's rate.

£11,888 ÷ 52 x 51 = £11,659.38
£10,956 ÷ 52 x 1 = £210.70

£11659.38 + £210.70 = £11,870

Personal Allowance £12,570 less £11,870 = tax code allowances £700 = tax code 70L.