Confused by tax code

molerat

Your estimated income should be what your P60 will show as taxable pay, each payslip should give that as monthly and year to date so you should be able to figure out what that will be at end of year, tax and NI do not figure into that amount.

6ft2oflovely

https://forums.moneysavingexpert.com/discussion/comment/81881655#Comment_81881655

so last payslip on 31st Jan has a to date figure of 23,666.40- see attached

IMG_0962.png

molerat

Your taxable pay to date is £22364.70 and your pay each month is the same so your estimated income for the year should be showing as £26837. As your main income source does not reach the intermediate tax threshold the usual coding method would be SBR on the pension and a rate band adjustment on the main source to catch the extra tax that would be due. I wonder if changing the job to the correct amount would trigger a complete re-assessment and correct the coding. That £464 rate band adjustment is spot on to deduct the additional intermediate rate tax for a £25808 income and the pension being taxed at SBR - are you sure the pension is SD0 ?

6ft2oflovely

https://forums.moneysavingexpert.com/discussion/comment/81881763#Comment_81881763

IMG_0921.jpeg

definitely SD0…. On the NHS Pension letter and on HMRC

molerat

Your on line tax account also shows SD0 ?

They are then taking too much tax as they are using a rate band adjustment to collect the tax already being collected (and more !). Two options then. Either correct the job estimated income to £26837 and see where that goes, changes usually show in your on line tax account in a couple of days, or give them a call and ask why there is a rate band adjustment when they are already collecting the intermediate rate tax from the pension (and give them the correct estimate for the job income).

6ft2oflovely

https://forums.moneysavingexpert.com/discussion/comment/81881814#Comment_81881814

so sorry, my bad (I did caveat the post as me being bad with numbers!)

HMRC reflects SBR not SD0

molerat

So you need to check your actual income received from the pension, it should be around £9 more than shown on that pay slip. If the pension is deducting at 21% you need to speak to them. You will also need to change that estimated job income as if the pension is deducting at SBR you are underpaying slightly (around £10 over the whole year) and that rate band adjustment needs upping to £515

6ft2oflovely

https://forums.moneysavingexpert.com/discussion/comment/81881844#Comment_81881844

thank you, and thanks for bearing with me!

numbers and figures just frazzle my brain. The picture above is correct for the pension, I receive the figures shown and HMRC shows pretty much the same

molerat

If you click on the payments what does it show each month for the gross pension amount and the tax deducted, you can't assume HMRC and Paymaster are singing from the same hymn sheet. You should have received another payslip on a change of tax code from SD0 to SBR. Depending on which particular layout your HMRC account is using, yes there are more than one !, you may be able to see a blow by blow account of each tax code change for a particular income source over the whole year, other layouts will only show the last change.

6ft2oflovely

https://forums.moneysavingexpert.com/discussion/comment/81881913#Comment_81881913

not received an update to date ‘payslip’ or statement, it tends to come annually