Moving from Alpha to Partnership - tax code change question.

Dazed_and_C0nfused

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

SimonSeys

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

When my tax code changed last week, HMRC sent me an email inviting me to log on and see what it is.  The detail - including the £9k payments to a personal pension - are listed there. 

I’m worried that if I change my estimated earnings back to £100k myself, I’ll have to start the process again.

Dazed_and_C0nfused

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

When my tax code changed last week, HMRC sent me an email inviting me to log on and see what it is.  The detail - including the £9k payments to a personal pension - are listed there. 

I’m worried that if I change my estimated earnings back to £100k myself, I’ll have to start the process again.

So if you can see pension contributions of just £9k how much have your tax code allowances been increased by?

hugheskevi

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Note that HMRC telephone folks can only code in a relief-at-source contribution of a maximum of £10,000 (gross). For anything above that, you need to use the online form. 

SimonSeys

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

When my tax code changed last week, HMRC sent me an email inviting me to log on and see what it is.  The detail - including the £9k payments to a personal pension - are listed there. 

I’m worried that if I change my estimated earnings back to £100k myself, I’ll have to start the process again.

So if you can see pension contributions of just £9k how much have your tax code allowances been increased by?

9k.  To 2150L (from memory). 

SimonSeys

hugheskevi said:

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Note that HMRC telephone folks can only code in a relief-at-source contribution of a maximum of £10,000 (gross). For anything above that, you need to use the online form. 

Thanks @hugheskevi. Yes.  I’ve previously made a small change to my tax code online, but this time had to upload documents (twice, as the upload didn’t work first time).

I think the online form might be best, but the first time it four weeks for HMRC to respond.  (No complaints - I understand the pressure everyone is under - but if it can be resolved in a ten minute phone call then that’s more efficient all round).

Dazed_and_C0nfused

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

When my tax code changed last week, HMRC sent me an email inviting me to log on and see what it is.  The detail - including the £9k payments to a personal pension - are listed there. 

I’m worried that if I change my estimated earnings back to £100k myself, I’ll have to start the process again.

So if you can see pension contributions of just £9k how much have your tax code allowances been increased by?

9k.  To 2150L (from memory). 

You couldn't have extra tax code allowances of 9k if your RAS contributions were 9k.

I don't think you have quite grasped what is happening here.  The tax code allowances are simply to allow relief above the basic rate you have already received within your pension.

So if the extra tax code allowances are 9k with estimated earnings of £68k the gross contributions HMRC have recorded could well be the amount you have notified them of.

Why not update your estimated earnings and see what the new tax code turns out to be?  You can do that online, without needing to speak to anyone in HMRC

SimonSeys

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

When my tax code changed last week, HMRC sent me an email inviting me to log on and see what it is.  The detail - including the £9k payments to a personal pension - are listed there. 

I’m worried that if I change my estimated earnings back to £100k myself, I’ll have to start the process again.

So if you can see pension contributions of just £9k how much have your tax code allowances been increased by?

9k.  To 2150L (from memory). 

You couldn't have extra tax code allowances of 9k if your RAS contributions were 9k.

I don't think you have quite grasped what is happening here.  The tax code allowances are simply to allow relief above the basic rate you have already received within your pension.

So if the extra tax code allowances are 9k with estimated earnings of £68k the gross contributions HMRC have recorded could well be the amount you have notified them of.

Why not update your estimated earnings and see what the new tax code turns out to be?  You can do that online, without needing to speak to anyone in HMRC

I’ve no idea how the £9k was calculated or where it came from!  It doesn’t reconcile with anything I can identify.   

Gov.uk has the option to “see how we calculated your tax code” (or something like that).   Expanding that shows payments to a personal pension of £9k…

Dazed_and_C0nfused

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

Dazed_and_C0nfused said:j

SimonSeys said:

Dazed_and_C0nfused said:

SimonSeys said:

QrizB said:

SimonSeys said:

I’ve switched from Alpha to Partnership.

When did you switch? April, or more recently?

June.  But even so my taxable earnings are showing as £33k lower and personal allowance is up by £9k

Your Personal Allowance cannot possibly increase above £12,570.

Do you mean your tax code allowances?

How much do you expect your P60 will show your taxable earnings as for 2025/26?  Remembering that relief at source contributions do not reduce your taxable income.

Yes. That’s right.  I think HMRC use the term ‘tax free amount’ which is up by £9k.  I expect my p60 to,show c. £100k, but gov.uk is showing c. £67k with a tax code of 2150L

Ok, in your original post you seemed confused about your contributions.

Total contributions are £2.8k x 12 = £33.6k, so I think I’m due an extra (40%-20%) x £33.6k = £6.7k refund. Ie my tax code should be £6.7k / 0.4 =£16.8k higher. 

It is the gross contributions which is important, not the net amount you referred to.

So if your (gross) contribution was £3,500 for say 10 months then that is £35,000 for the current tax year. 

If your taxable earnings are going to increase to ~£100k (following the increase from not contributing to Alpha, which is a net pay pension scheme) then based on what you have posted so far you would receiving higher rate relief on the whole lot.  With the (incorrect) estimated earnings of £67k your additional relief would be much more limited.

With earnings of ~£100k and gross RAS contributions of £35,000 you could expect additional tax code allowances of £17,500.  But your actual gross contribution will determine the correct estimate to be used in your tax code.

Note the tax code is only ever provisional, the final position will be reviewed once the tax year is finished.

Thanks.  So to be clear, my tax code should be aomething like 3000L?

Well that would potentially depend on numerous other things not touched on in this thread.  Other taxable income like untaxed interest for example.

But from what you have posted it seems likely that your adjusted net income will be well under £100k, no no tapering of the Personal Allowance.

And depending on what your actual gross RAS pension contributions are you could be (provisionally) due extra tax code allowances in excess of £15k, to give the additional relief due on £30k+ of RAS contributions.

Nothing extra like other taxable income. 

What do you think my tax code shoukd be (roughly) assuming £30k RAS contributions?

Thanks in advance,
S
.

2757L.

But other than by a mathematical quirk it will only be that if the gross RAS contributions are exactly £30,000 and your estimated taxable earnings are at least £80,270.

What did you actually tell HMRC your RAS contributions would be in 2025/26?

And how much did you tell them your estimated taxable earnings would be in 2025/26?

Thanks @Dazed_and_C0nfused 

Ignoring the fact this started in June, I told HMRC that I would be making contributions of £25.6k (net) or £32k (gross).  I put both numbers in my message to HMRC.

Checking gov.uk, my taxable earnings have reduced from £100k to £68k, and my tax code calculation shows an assumption of a £9k pension contribution.

i guess I need to talk to HMRC to get them to change my taxable earnings back to £100k, and personal pension contributions to £32k?

Any views on whether to do this over the phone or through the online form.   The people I speak to on the phone have varying levels of expertise.  Some very good, others are less experienced 

Thanks,
Si

You can update your estimated earnings via your Personal Tax Account.

And this will prompt an automatic review of your tax code.

Tax codes generally just show you the extra tax code allowances needed to give you the additional relief due on RAS contributions so how have you been able to calculate that your new tax code is based on pension contributions of £9k 🤔.  Is there some extra detail shown on your tax code notice or Personal Tax Account?

When my tax code changed last week, HMRC sent me an email inviting me to log on and see what it is.  The detail - including the £9k payments to a personal pension - are listed there. 

I’m worried that if I change my estimated earnings back to £100k myself, I’ll have to start the process again.

So if you can see pension contributions of just £9k how much have your tax code allowances been increased by?

9k.  To 2150L (from memory). 

You couldn't have extra tax code allowances of 9k if your RAS contributions were 9k.

I don't think you have quite grasped what is happening here.  The tax code allowances are simply to allow relief above the basic rate you have already received within your pension.

So if the extra tax code allowances are 9k with estimated earnings of £68k the gross contributions HMRC have recorded could well be the amount you have notified them of.

Why not update your estimated earnings and see what the new tax code turns out to be?  You can do that online, without needing to speak to anyone in HMRC

I’ve no idea how the £9k was calculated or where it came from!  It doesn’t reconcile with anything I can identify.   

Gov.uk has the option to “see how we calculated your tax code” (or something like that).   Expanding that shows payments to a personal pension of £9k…

On estimated earnings of £68k a £9k tax code allowance increase will reduce your tax liability by £3,600 as there is £9k less income being taxed under PAYE.

That is just a provisional amount of relief (using an incorrect earnings figure), when the tax year has ended the actual relief due will be checked and that is done by extending your basic rate band by the gross contribution.  RAS contributions don't reduce your taxable income.

molerat

The pension contribution amount shown is based on the relievable contribution which is governed by your income above the higher threshold, not what you actually contribute.  According to HMRC I only make £146 pension payments when in fact I make my allowable £3600 gross, my coding is correct using that amount.  At the start of the year when my income estimates were all over the place that amount was different, corrected all the income streams and it changed without me having to do anything else. You need to correct your income amount and see where that goes.