Paying back WFA £200

GibbsRule_No3.

Strange question, I believe £17 a month was mentioned as being reclaimed for the WFA £200 for earnings above £35,000 for this year. How is that to be achieved? I have private pensions as well as State Pension and I also work two days a week, currently 16 hours. I pay tax on my monthly income and the private pensions. After the State Pension is removed from my personal allowance, the rest of the PA seems to be put towards my largest pension rather than my wages, So BR code is applied. I have just had a pro rata pay rise but was surprised my wages this month were only roughly £5 more. I was expecting £25-£30 (Full time work colleagues say they have £75-£80 more as they expected 36 hour week), is the £17 reclaim likely to be the reason, rather than spread it around the private pensions and wages? Unfortunately I have been on jury service the past two weeks, so have not been able to see my payslip to check details.

QrizB

The answer is going to be in what tax codes have been assigned to your various income streams for 26/27.

Have you ever logged on to your personal tax account? All the info should be there.

https://www.gov.uk/personal-tax-account

debitcardmayhem

Your main private pension/main income will have a "normal" code , your job will be show BR meaning you will be taxed @20% for that. Then HMRC and you will have to sort it out.

EDIT as @QrizB says look online.

GibbsRule_No3.

My work pay has 32L as the code the pensions are BR. I’m hoping that it will all settle down after I retire, whenever that comes to being. Half the state pension seems to disappear in tax at present, so I hope that means I won’t be much worse off financially when I do. Except for the mental health aspect of working, I’m not sure what else is a benefit.

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/81993490#Comment_81993490

Rough calculation suggests that losing £10k work pay, will reduce your take home by £7,200.

GibbsRule_No3.

https://forums.moneysavingexpert.com/discussion/comment/81993716#Comment_81993716

I hope it means I can take £400 ish a month from a Stakeholder Pension as substitute for the current wages. The longer I can go on, the more goes into the fund to tide me over. I need to workout how I take the Jam from Martin’s Swiss roll and leave the sponge in tact.

brewerdave

My WFA deduction is shown as a £500 negative entry on my 26/7 tax code - I got £100 actual payment in November 25. I understand that they will take back ~£8 extra pm in tax.

Furthermore, the 26 and 27 WFA payments will be deducted as ~£17 pm in tax year 27/8 -assuming Rach from Accounts doesn't change the rules again !

GibbsRule_No3.

https://forums.moneysavingexpert.com/discussion/comment/81995810#Comment_81995810

I will opt to decline te £200 if offered for 2026/27. Not sure what time in the year we find out, so I can say no to it. With only a £5 pay rise a month this year, I’d be in a Minus situation next year if I’m still working.