59L tax code

littleD

Hi all, just started reduced hours and also collected my first state pension - I've been put on 59L W1M1 tax code - no idea whether this is long term or if I need to provide any info to HMRC - any help would be welcome thank you PS added this to Cutting Tax as I couldn't find another category to match

Isthisforreal99

littleD said:

Hi all, just started reduced hours and also collected my first state pension - I've been put on 59L W1M1 tax code - no idea whether this is long term or if I need to provide any info to HMRC - any help would be welcome thank you PS added this to Cutting Tax as I couldn't find another category to match

That would suggest a weekly state pension of about £230 a week. Is that what you get? If so, nothing you need to do.

Ayr_Rage

Sounds about right, my code is S81L with a state pension of £226.33 per week.

littleD

Thank you for the reply - spot on £230.25 - so is this an emergency tax and will it alter - sorry, not very good at tax and its implications

Ayr_Rage

littleD said:

Thank you for the reply - spot on £230.25 - so is this an emergency tax and will it alter - sorry, not very good at tax and its implications

That will be the code applied to your PAYE income going forward, your SP uses up all bar £590 of your allowance.

littleD

Thanks, so I am taxed on the £590 that is left plus my wages? Is that correct/

Isthisforreal99

littleD said:

Thanks, so I am taxed on the £590 that is left plus my wages? Is that correct/

No, you have £590 of your tax free allowance left to go against your wages.

Ayr_Rage

littleD said:

Thanks, so I am taxed on the £590 that is left plus my wages? Is that correct/

Not quite.

The whole of your SP is paid to you without any tax deducted so uses up most of your annual allowance.

You pay tax on all of your PAYE income bar the first £590 which is the amount left from your annual allowance.

molerat

You are taxed on all your wages except for the now £50 per month allowance as opposed to the £1048 previously, the state pension is using up the remainder .  Next year you will likely have a single digit code if not 0.

Dazed_and_C0nfused

littleD said:

Thank you for the reply - spot on £230.25 - so is this an emergency tax and will it alter - sorry, not very good at tax and its implications

No, it's highly likely to be the correct tax code.

Why do you think anything needs to change?

Remember DWP will pay you your £230.25 or £921.00 without ever deducting any tax.

littleD

I have been estimated at earning £30,762 this year - that includes SP