Change in Tax Code

Dazed_and_C0nfused

german_keeper said:

Dazed_and_C0nfused said:

german_keeper said:

BikingBud said:

Marcon said:

thrifty_not_tight said:

Sarahspangles said:

thrifty_not_tight said:

Hi. I'm not sure I've posred this in the right place but none of the optiond seemed appropriate.

Hoping someone can advise me as HMRC are impossible to get hold of.
I received an email today advising that my tax code is changing so they can claw back around £1k.
I don't have huge savings so not interest related. Nothing has changed in my job so the only think I can think of is to do with a small pension I claimed in April 2024.

It was worth approximately £5k and I received £4k so assumed the pension company had deducted the tax but why then am I paying twice?

Does this sound likely? There is nothing elae I can think it is.

Have they changed your tax code for the current tax year or 2025/26? If the latter, they may assume your pension is going to be paid annually.

Ahh that makes sense! Thanks for that. I will need to persist in trying to call them to clarify.

Have you logged into your personal tax account, which might shed a bit of light: https://www.gov.uk/personal-tax-account

I also got an email and went to check on the app but there is no change to any of my income or my tax code.

I am not sure if this is a glitch but will check again in a few days.

I had an email today and I couldn't find anything at first but it was about 25/26 tax year. For some reason they have estimated my civil service pension is going to increase by the grand total of 0.083% and my tax bill by £1. God knows why so I have altered the estimate myself to the correct amount. Same thing happened last year. Maybe they just add a piddling little bit to trigger the correction by the taxpayer.

AIUI they don't add anything.

The estimated of (PAYE) pension income for the forthcoming tax year is simply based on the Real Time Information data received for the current tax year at the point your tax code is calculated.

See CY+1 Annual coding estimated pay section here,

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye13090

I suspect this covers a lot of people with a pension

For an employment or pension which started earlier than current year and the pay frequency is weekly, fortnightly, 4 weekly or monthly paid

Taxable pay to date on latest FPS divided by the week/month number multiplied by payment frequency (52, 12 or 13).

Thanks for this, just checked it and the figure used is indeed YTD divided by 11 and multiplied by 12. Presumably for many this calculation will always generate a slightly higher figure than CY because previous April is always slightly lower. So it will trigger me to update with the correct figure.   

Definitely the best approach.  No one knows as well you what your pension is likely to be in the forthcoming tax year.

It could be argued a set % could be added to the amount calculated but then that would be wrong for all those with a static pension.  And there are doubtless dozens of different % increases being applied across all the different pension schemes that are paying out each year!

BikingBud

Sarahspangles said:

This is what the email looks like, and you only receive emails if you’ve opted to do so.

You have a tax code change

Dear Ms SarahSpangles

Your PAYE Income Tax records have recently changed, which means the amount of tax you pay will change.

For security reasons we do not give the full details here, but it could be because:

• your job changed
• your pay changed
• your company benefits, such as a company car changed
• your pension changed

How to check your details to make sure you pay the right amount of tax

Search GOV.UK for ‘personal tax account’, sign in and go to the ‘Pay As You Earn (PAYE)’ section.

If you sign in using a business tax account, you may be able to use it to access your personal tax account.

If you do not have a personal tax account

You need to set one up before you can see your tax code change.

Search GOV.UK for ‘Personal tax account: sign in or set up’.

Why you’re receiving this email

You’re receiving this email because you chose to receive email updates instead of letters by post.

For security reasons we have not included any links in this email.

From HMRC Check your Income Tax

Thanks closer inspection does advise it is for next year, not appearing in the app, which does allow you to achieve quite a lot does limit it's usefulness somewhat! I'll come back to it in Apr once I know what is changing.

You have a tax code change Dear BB Your PAYE Income Tax records have recently changed, which means the amount of tax you pay will change. For security reasons we do not give the full details here, but it could be because: we have now calculated your tax code for the next tax year (tax year 2025 to 2026) your job changed your pay changed your company benefits, such as a company car changed your pension changed How to check your details to make sure you pay the right amount of tax Search GOV.UK for ‘personal tax account’, sign in and go to the ‘Pay As You Earn (PAYE)’ section. If you sign in using a business tax account, you may be able to use it to access your personal tax account. If you do not have a personal tax account You need to set one up before you can see your tax code change. Search GOV.UK for ‘Personal tax account: sign in or set up’. Why you’re receiving this email You’re receiving this email because you chose to receive email updates instead of letters by post. For security reasons we have not included any links in this email. From HMRC Check your Income Tax

If you’re unsure an email is from HMRC: Do not reply to it or click on any links Report the suspicious email to HMRC - to find out how, go to GOV.UK and search for 'Avoid and report internet scams and phishing'

Hoenir

Had the email yesterday.  Went online to my Personal Tax Account . Revised the 25/26 figures as I thought fit. Having various sources of income in retirement. Does mean that the figures do change every year. 

BikingBud

Hoenir said:

Had the email yesterday.  Went online to my Personal Tax Account . Revised the 25/26 figures as I thought fit. Having various sources of income in retirement. Does mean that the figures do change every year. 

As mentioned above HMRC cannot know what values those pensions might increase by so it is only an estimate and with a prompt now showing on the App as a "Check Tax Estimate" in green box.

And who I check there is a bizarre change applied, to take some of my basic allowance from one source and spread it around rather than just using 1257 and BR. 

I'm sure it made sense to someone 🤷🏼‍♂️

molerat

BikingBud said:

Hoenir said:

Had the email yesterday.  Went online to my Personal Tax Account . Revised the 25/26 figures as I thought fit. Having various sources of income in retirement. Does mean that the figures do change every year. 

As mentioned above HMRC cannot know what values those pensions might increase by so it is only an estimate and with a prompt now showing on the App as a "Check Tax Estimate" in green box.

And who I check there is a bizarre change applied, to take some of my basic allowance from one source and spread it around rather than just using 1257 and BR. 

I'm sure it made sense to someone 🤷🏼‍♂️

I have S162, SBR & SD0, the code has a rate adjustment to counteract the "overtax" of the SD0, it should really be S151, SBR & SBR,
go figure. But it's not all bad, it makes me 58p a year better off

BikingBud

Don't blow it all at once