Tax Code Changes

Moonwolf

I have now been retired about 8 weeks. Just received my second drawdown payment. 

I receive two payments, £750 tax free and £2250 which is taxed.

My tax code used to include some employment expenses (professional fees and a journal) but obviously I won’t be claiming those anymore. I note though that my current tax code is 1227LX which I can’t fathom the 1227, but I think it should end up as 1257L.

Should I just wait for it to resolve or will I need to straighten it out myself?

Hoenir

Have you logged onto your online personal tax account? 

penners324

You'll need to straighten them out yourself.

Which can be done through your online account with hmrc

Moonwolf

penners324 said:

You'll need to straighten them out yourself.

Which can be done through your online account with hmrc

Thanks for that, I was able to remove my employment expenses. I hadn’t seen that I could do that before.

But supposedly I will have some untaxed savings and investment income. I can’t see it anywhere and I only have about £10K outside ISAs, mostly earning abiut 4% so should be in my £1000 allowance.

Moonwolf

Moonwolf said:

But supposedly I will have some untaxed savings and investment income. I can’t see it anywhere and I only have about £10K outside ISAs, mostly earning abiut 4% so should be in my £1000 allowance.

I’ve been through previous years and can’t find anything, I’ve never had taxable interest on savings or investments. I did transfer my stocks and shares ISA to a cash ISA using an ISA transfer form from the new provider, just after I put in my notice, I wonder if it is an artefact of that.

Dazed_and_C0nfused

Moonwolf said:

Moonwolf said:

But supposedly I will have some untaxed savings and investment income. I can’t see it anywhere and I only have about £10K outside ISAs, mostly earning abiut 4% so should be in my £1000 allowance.

I’ve been through previous years and can’t find anything, I’ve never had taxable interest on savings or investments. I did transfer my stocks and shares ISA to a cash ISA using an ISA transfer form from the new provider, just after I put in my notice, I wonder if it is an artefact of that.

What do you mean by "supposedly"?

That you expect to have taxable interest for the first time or HMRC have got taxable interest details already, which you weren't expecting them to have?

The latest information they are likely to have at the moemnt, which is temporarily used as an estimate for later years, is from 2023-24.

Moonwolf

Dazed_and_C0nfused said:

Moonwolf said:

Moonwolf said:

But supposedly I will have some untaxed savings and investment income. I can’t see it anywhere and I only have about £10K outside ISAs, mostly earning abiut 4% so should be in my £1000 allowance.

I’ve been through previous years and can’t find anything, I’ve never had taxable interest on savings or investments. I did transfer my stocks and shares ISA to a cash ISA using an ISA transfer form from the new provider, just after I put in my notice, I wonder if it is an artefact of that.

What do you mean by "supposedly"?

That you expect to have taxable interest for the first time or HMRC have got taxable interest details already, which you weren't expecting them to have?

The latest information they are likely to have at the moemnt, which is temporarily used as an estimate for later years, is from 2023-24.

My tax code says it is made up of additions due to employment expenses which I have now removed as at 31 March 2025 and and a deductions due to £571 of “ Untaxed interest on savings and investments”

There is no other income showing this year other than one payment of £2250 in month 2 from Standard Life* and my only income in previous years is employment income. *The month 1 payment was all tax free.

I have no idea why HMRC seems to think I need that £571 on my tax code. Why they think I earned that this year or had that income and need an adjustment from previous years.