Wrong tax code

moving1moretime

Ok, so will I get any notifications from HMRC each year with regard to any interest I earn on my savings, as I have now closed a few accounts and opened new ones in joint names with my husband, they were previously in my name alone as he worked, he's now recently taken early retirement and isn't claiming any private pensions yet. We have also max out our ISAs and will do so again in april

molerat

moving1moretime said:

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

There will be a link for view or update pension details and then update your estimated taxable income. So if your income from that stream will genuinely be £0 you can change it to that although it will likely have no effect on your code as that will continue to have your untaxed interest set against it.

moving1moretime

Is there anyway you can screen shot and show me those pages, I can't seem to find it, and yes it's genuine, there are no more payments due from my pension I cashed it all in, it's finished.

eskbanker

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 

The important thing to recognise is that tax codes don't actually determine how much income you can earn before paying tax, they are simply a mechanism to drive PAYE deductions, and if you have no PAYE income stream then the tax coding is irrelevant, so you can indeed earn about £17K of savings interest without paying tax if you have no other taxable income, regardless of what your tax code is.

moving1moretime

I've just had an email from them to say there have been technical issues and some people are experiencing difficulties with accessing parts, so it may be down to that.

moving1moretime

So at what point will my tax code get reviewed, once I hit state pension age, but before I claim my pension, after I put in to claim my pension or after I start receiving it.

eskbanker

moving1moretime said:

So at what point will my tax code get reviewed, once I hit state pension age, but before I claim my pension, after I put in to claim my pension or after I start receiving it.

If your taxable income consists of state pension and savings interest, then neither of these uses PAYE so tax coding will continue to be irrelevant.  However, if your state pension plus savings interest results in a tax liability, then HMRC will eventually assess what you're due to pay and will seek payment at that stage, sometime after the end of the tax year concerned.

moving1moretime

So it's never likely to change then, ?
So now what happens if once I get my state pension I decide to take my marriage tax allowance back from my husband (I probably won't and assume he can continue to use it as he will be claiming on his private pensions at some point not me) will that be enough to generate a new tax code or is it still irrelevant?

eskbanker

moving1moretime said:

So it's never likely to change then, ?
So now what happens if once I get my state pension I decide to take my marriage tax allowance back from my husband (I probably won't and assume he can continue to use it as he will be claiming on his private pensions at some point not me) will that be enough to generate a new tax code or is it still irrelevant?

Tax codes are only relevant to those with PAYE income.

Dazed_and_C0nfused

moving1moretime said:

So it's never likely to change then, ?
So now what happens if once I get my state pension I decide to take my marriage tax allowance back from my husband (I probably won't and assume he can continue to use it as he will be claiming on his private pensions at some point not me) will that be enough to generate a new tax code or is it still irrelevant?

Why would a new tax code be relevant if your only income was State Pension and interest?

Who would get to use this new tax code?