Tax Code Query

threlkeld53

This is in relation to my wife....

Her state pension is £8210 p.a.
Her personal tax allowance is equivalent to £11,313 because a few years ago she allocated 10% of £12,570 to me.

Each year she pays £2,880 into a SIPP, receives the £720 from HMRC and then withdraws £900 tax free. She then withdraws the balance of £2,700, which is well within the limit of her 310N tax code.

This tax year she has received a tax code notification of 203N, which means that she'd pay tax on about £700.

Contacting HMRC is difficult. If she goes ahead to withdraw the £2,700, will they re-adjust the code automatically once her P55 is submitted?



 

Dazed_and_C0nfused

threlkeld53 said:

This is in relation to my wife....

Her state pension is £8210 p.a.
Her personal tax allowance is equivalent to £11,313 because a few years ago she allocated 10% of £12,570 to me.

Each year she pays £2,880 into a SIPP, receives the £720 from HMRC and then withdraws £900 tax free. She then withdraws the balance of £2,700, which is well within the limit of her 310N tax code.

This tax year she has received a tax code notification of 203N, which means that she'd pay tax on about £700.

Contacting HMRC is difficult. If she goes ahead to withdraw the £2,700, will they re-adjust the code automatically once her P55 is submitted?

Why do you think a different tax code would be needed?

Can you provide the breakdown of the code?

Her Personal Allowance will only be £11,310, not £11,313.

LITRG

Afternoon, in case it is helpful, we have some hints and tips on getting through to HMRC here: https://www.litrg.org.uk/tax-nic/getting-help-tax/tax-and-tax-credits-help-hmrc#1. Another trick is to not hang up when prompted by HMRC (usually just after they have sent you a text to online guidance 'you can hang up now') - just hold on and you will be put into the queue for an HMRC adviser: https://www.litrg.org.uk/tax-nic/getting-help-tax/tax-and-tax-credits-help-hmrc#1