Wrong tax code

Dazed_and_C0nfused

moving1moretime said:

Who is/was responsible for this tax code, was it the pension company can I ask them to correct it, or is it the tax office...please don't say it doesn't matter, it does matter to me, I have OCD with things like this and I Need it to be right for my mental health, if you understand you understand if you don't then you don't...😞

Sorry if it causes you stress but what you are saying doesn't make sense to the rest of us.

If you have no taxable income why does it matter if your tax code is 808N, 1131N, BR, SD1 or K12345?

In this instance you are either worrying unnecessarily or not telling us the full story.

moving1moretime

I have no reason not to tell you the full story I would not be on here asking for help otherwise, I have given you the truth, I do not lie, I've read it's my responsibility to make sure my tax code is correct, as I see it,but is not correct

moving1moretime

I used the HMRC online chat as I suffer with anxiety as this is for extra help, the online agent was most unhelpful, and said we cannot and will not change it,  why ? He said you don't seem to grasp what I'm saying so I'm ending the chat, and promptly cut me off, now seeing as this service is for people who need extra help and I told him I suffer from anxiety and depression I think his behaviour was not acceptable, thus he didn't help me at all. 

molerat

Your tax code is correct.  You have savings interest along with insufficient income to utilise your full allowance so spare allowance is allocated to that untaxed interest, it is the way the system works and is correct in your circumstances.  You need to learn how the tax system works rather than getting stressed over something that you think is incorrect when in fact it is your understanding that is incorrect.  You could always increase the estimated income from that pension to utilise the full allowance then the code would be increased to accommodate that amount but doing that would likely also cause you stress as it would also be wrong but give the desired outcome.  Many people have codes allocated to employments etc that they no longer have, My SIL has a code allocated to her last job tht she left in 2020, it is just one of those things the system does.

BTW, you do have access to your on line tax account as that is what the app is an extension of, when you click some links it actually takes you to a browser page rather than staying within the app.

moving1moretime

Well yes I'm no expert that's why I'm on here, I should not pay tax on any interest I earn in savings. As I understand it my personal allowance should be £12570 less marriage allowance of £1260 so my tax code should be 1131n correct ?
I can therefore have interest from savings up to the value of 1131+1000+5000 total £11310 personal allowance +£1000 PSA + £5000 starter savings allowance, now I do not expect my savings to earn anywhere near that amount but as I understand it anything over that 808n will be taxed, so once I add in my state pension will this not all count as income and I'll get taxed, because as i see it I shouldn't, if I'm wrong please explain why, and will my tax code change once I claim my state pension 

moving1moretime

There is no estimated income from my pension, the tax office seems to think I'm getting £3230 this year, I'm not there is no pension left to claim this from and no payment is being made to me as income.

Dazed_and_C0nfused

moving1moretime said:

Well yes I'm no expert that's why I'm on here, I should not pay tax on any interest I earn in savings. As I understand it my personal allowance should be £12570 less marriage allowance of £1260 so my tax code should be 1131n correct ?
I can therefore have interest from savings up to the value of 1131+1000+5000 total £11310 personal allowance +£1000 PSA + £5000 starter savings allowance, now I do not expect my savings to earn anywhere near that amount but as I understand it anything over that 808n will be taxed, so once I add in my state pension will this not all count as income and I'll get taxed, because as i see it I shouldn't, if I'm wrong please explain why, and will my tax code change once I claim my state pension 

Your tax code will never factor in a source of income that hasn't started yet.

Once your State Pension starts your tax code would be reviewed again and if you don't have any spare tax code allowances then the interest wouldn't be included in your code (assuming it was all going to be taxed at 0% courtesy of the savings starter rate or savings nil rate).

moving1moretime

Spare tax code allowance??

molerat

Yes, once you are in receipt of your state pension your coding will be re-assessed.

As far as savings allowances are concerned you can only use those extra £5K and £1K bands once you have used up all your basic allowance so at the moment those are irrelevant to you and your savings interest has been allocated to that basic allowance.  It seems counter intuitive but it has been done correctly although not doing it that way would save HMRC a heck of a lot of phone calls.

moving1moretime

Molerat, I did clink on the other links this I where I found the part that states an income from pension of £3230 etc, but there are no links anywhere that I can find to change my code or Indeed remove that "ghost" income