PAYE Tax code

MABLE

I am presently drawing an occupational pension from a former employer and in the last tax year I have been taxed at BR M1. I also have a job and in the last tax year my code being 522T. So all my allowances were against my employment.

However I received my employed payslip today and instead of a tax code it now states BR !!!. I tried to ring the Tax Office but systems were not available today. However speaking generally they seem to think the system had reversed my codes and will now be against my pension.

I further add that the pension is dealt with by another tax office and they are the ones that advise my employer what code to use.

Has anyone else experienced this happening to them at the start of the new tax year.

jem16

Which gives the highest income - your pension or your job?

It would normally be sensible to apply the tax code to the highest earning one especially where one is below the personal allowance otherwise you would not be getting the benefit of the tax-free allowance.

Did you not receive a coding notice?

System

Your main tax office is probably the one that deals with your pension since theoretically that will remain constant and never cease. Given this it does make more sense for your allowances to be given against your pension and for any other PAYE source to be taxed at BR. That is providing your pension pays you more than £5435 per year.

If HMRC have changed your codes around then you should have received coding notices for both sources explaining this. If you haven't received any notices then either your employer has changed your code of their own bat or HMRC don't have your correct address and the notices haven't reached you.

MABLE

jem16 wrote: »

Which gives the highest income - your pension or your job?

It would normally be sensible to apply the tax code to the highest earning one especially where one is below the personal allowance otherwise you would not be getting the benefit of the tax-free allowance.

Did you not receive a coding notice?

Thanks for the reply.

No I have not received any notification that code would change. Also I agreed back last year with HMRC that as my salary is higher than my pension my allowances should be used against that. They agreed and everything has been going along fine. Paying BR rate on pension and tax code 522t MTH1 on salary.

Maybe it is my responsibility to advise them every new financial year where the allowance should go.

jem16

MABLE wrote: »

Maybe it is my responsibility to advise them every new financial year where the allowance should go.

It shouldn't be.

You should phone the tax office that deals with your pension as that is where your main code should be used. They can then liaise with the other tax offcie and find out what is going on.