K188 Tax code

Twinsdad1844

Apologies if this post is in the wrong forum but I have seen a lot of tax code discussion on here.

My 76 year old Mum has just received a HMRC letter explaining that her Tax Code is changing for 25-26 to K188.

She receives a widows state pension £269 pw and a widows police pension of £1377 pm, now I think I understand that that as her state pension is over her PA of £12570 the additional tax (which looks like it hasn't been collected in previous year(s)) will be applied to her Police Pension.

What I don't understand after reading about the K tax code is will my Mum be getting taxed an additional 20% of £1880 or does she owe £1880 in tax to be collected next year?

Many thanks

 

masonic

The K188 code means she will have to pay tax on an extra £1880 next year (and all of her personal allowance has already been consumed by other income). This may be to catch up multiple prior years and may reduce after that.

badmemory

There should be a breakdown on the letter explaining how they have calculated it which should help to explain it.

Dazed_and_C0nfused

Twinsdad1844 said:

Apologies if this post is in the wrong forum but I have seen a lot of tax code discussion on here.

My 76 year old Mum has just received a HMRC letter explaining that her Tax Code is changing for 25-26 to K188.

She receives a widows state pension £269 pw and a widows police pension of £1377 pm, now I think I understand that that as her state pension is over her PA of £12570 the additional tax (which looks like it hasn't been collected in previous year(s)) will be applied to her Police Pension.

What I don't understand after reading about the K tax code is will my Mum be getting taxed an additional 20% of £1880 or does she owe £1880 in tax to be collected next year?

Many thanks
 

Yes, K188 means the Police Pension will have basic rate tax deducted from it but the people paying the Police Pension will also add ~£157 to her pension each month purely for the purposes of calculating the tax due.

So she can expect to pay ~£306/month in tax from April onwards.  So nearly £3,700/year.