Changing my tax code mid-year

FlorayG

I'm currently in the 40% tax bracket (my state pension added to my usual income did that just this year, what a shock!) but being made redundant next month. Obviously I won't be wanting to pay 40% on my afterwards meagre income - I'm not planning to get another job - is it possible to change tax codes mid-year and if so, how do I apply? thank you for any information

Bookworm225

How do I change my tax code? | MoneyHelper

Tax codes: How to update your tax code - GOV.UK

FlorayG

Thanks @Bookworm225 this seems to say it gets done automatically anyway when my current employer informs them is that the case? I hope they do it quickly!

chrisbur

Do you expect to work again this tax year.

Albermarle

FlorayG said:

Thanks @Bookworm225 this seems to say it gets done automatically anyway when my current employer informs them is that the case? I hope they do it quickly!

Yes that is what should happen, but worth keeping an eye on your personal tax account online that you can see that your employment is marked as ended.
However as your only taxable income will be your state pension, any excess tax paid back will have to be in the form of a rebate, which you will probably have to chase up.

chrisbur

Once a P45 has been received and you are not planning to seek employment a P50 would probably be the best option.
 https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

There is a section on the P50 to confirm that you will have no employment for the rest of this tax year.

Dazed_and_C0nfused

FlorayG said:

I'm currently in the 40% tax bracket (my state pension added to my usual income did that just this year, what a shock!) but being made redundant next month. Obviously I won't be wanting to pay 40% on my afterwards meagre income - I'm not planning to get another job - is it possible to change tax codes mid-year and if so, how do I apply? thank you for any information

What income do you think a new tax code could be applied to?  Do you have another pension in payment as well as the State Pension?

mybestattempt

chrisbur said:

Once a P45 has been received and you are not planning to seek employment a P50 would probably be the best option.
 https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

There is a section on the P50 to confirm that you will have no employment for the rest of this tax year.

A P50 claim cannot be made it if in receipt of state pension.

Like @Dazed_and_C0nfused I don't understand why a tax code, unless there is already another pension already in payment, would even matter.

Assuming no other pension, and the current tax code is made up of just personal allowance less state pension, I'm not sure if HMRC would need to change it simply because employment has ceased.

flaneurs_lobster

mybestattempt said:

Like @Dazed_and_C0nfused I don't understand why a tax code, unless there is already another pension already in payment, would even matter.

Assuming no other pension, and the current tax code is made up of just personal allowance less state pension, I'm not sure if HMRC would need to change it simply because employment has ceased.

Is it simply that if there is no income subject to PAYE then, by definition, no tax code exists?

Nomunnofun1

mybestattempt said:

chrisbur said:

Once a P45 has been received and you are not planning to seek employment a P50 would probably be the best option.
 https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

There is a section on the P50 to confirm that you will have no employment for the rest of this tax year.

A P50 claim cannot be made it if in receipt of state pension.

Like @Dazed_and_C0nfused I don't understand why a tax code, unless there is already another pension already in payment, would even matter.

Assuming no other pension, and the current tax code is made up of just personal allowance less state pension, I'm not sure if HMRC would need to change it simply because employment has ceased.

Is your first sentence correct? Genuine question as it used to be the case when I was with HMRC. 

See question 12!

The declaration only referred to occupational pensions and state pension is not one of the benefits listed on page 1.

https://assets.publishing.service.gov.uk/media/668ea625fc8e12ac3edafa8d/P50Z_05-24.pdf

mybestattempt

Nomunnofun1 said:

mybestattempt said:

chrisbur said:

Once a P45 has been received and you are not planning to seek employment a P50 would probably be the best option.
 https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

There is a section on the P50 to confirm that you will have no employment for the rest of this tax year.

A P50 claim cannot be made it if in receipt of state pension.

Like @Dazed_and_C0nfused I don't understand why a tax code, unless there is already another pension already in payment, would even matter.

Assuming no other pension, and the current tax code is made up of just personal allowance less state pension, I'm not sure if HMRC would need to change it simply because employment has ceased.

Is your first sentence correct? Genuine question as it used to be the case when I was with HMRC. 

See question 12!

The declaration only referred to occupational pensions and state pension is not one of the benefits listed on page 1.

https://assets.publishing.service.gov.uk/media/668ea625fc8e12ac3edafa8d/P50Z_05-24.pdf

I just looked at all pages in the link @chrisbur provided, and it read to me that the P50 procedure would not apply if in receipt of state pension.

The P50Z you linked to refers to repayments of tax deducted from flexibly accessed pensions, which does not appear to be the case here.

I'm happy to be corrected if I've got it wrong.