Tax Code K277

LoubyLou1977

Morning All,
I wonder if anyone can help... My Husband is on Tax Code K277 - I'm not sure what this code is and I've read online its a Negative code? which to be honest i don't understand.
He Has a Small Personal Pension (pays £290 a Month) then gets AA Allowance and State Pension.
He doesn't work and has no extra Income... So I'm just wondering if anyone knows if the code is correct before i spend hours trying to get through to HMRC
Thank you all In Advance
Louise 

DRS1

The tax code notice usually explains how it is worked out.

A K code means he has a bit of untaxed income - the state pension for example and they are trying to get the tax due on that.

One thing to note is they can't deduct more than 50% of any individual payment so if £290 a month is the gross figure the most they can deduct is £145 pm.

Isthisforreal99

How is the tax code made up - there should be a breakdown showing personal allowance and what other income has been included in his tax code - state pension no doubt. How much is his state pension? If more than the personal allowance then you have a negative allowance and therefore a K code to collect the tax due on the state pension.

molerat

K277 means that £233 per month is added to the income it is set against for tax purposes, there is no untaxed amount so he pays tax on all that income plus £233. As already mentioned the coding notice, either on paper or in his on line tax account, will show how the code is calculated.  Is his state pension around £295 pw / £1180 per 4 weeks ?

Albermarle

As an example, if you had a K code of 100, it actually means a 1000, as they always leave the zero off the end.

If you had an income of £20,000 a year, you would actually pay tax as if you were earning £21,000, so a bit more tax every month.