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  • FIRST POST
    • AnotherJoe
    • By AnotherJoe 3rd Dec 19, 7:58 PM
    • 16,378Posts
    • 19,678Thanks
    AnotherJoe
    Help me out with new tax code
    • #1
    • 3rd Dec 19, 7:58 PM
    Help me out with new tax code 3rd Dec 19 at 7:58 PM
    My wife's just received a new tax code notice "375T M1"


    What does that mean?
    She has a tiny pension payment, about 250/month plus withdraws 750/month in drawdown.
    Not old enough for SP yet so thats her only income.


    Thanks

    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
Page 1
    • unholyangel
    • By unholyangel 3rd Dec 19, 8:17 PM
    • 14,213 Posts
    • 11,380 Thanks
    unholyangel
    • #2
    • 3rd Dec 19, 8:17 PM
    • #2
    • 3rd Dec 19, 8:17 PM
    Its this a second pension she has just started receiving this year?

    Any other income (state pension?) at all?
    Money doesn't solve poverty.....it creates it.
    • davidwatts
    • By davidwatts 3rd Dec 19, 8:37 PM
    • 305 Posts
    • 230 Thanks
    davidwatts
    • #3
    • 3rd Dec 19, 8:37 PM
    • #3
    • 3rd Dec 19, 8:37 PM
    Any other income (state pension?) at all?
    Originally posted by unholyangel
    OP suggests not drawing SP.

    Found this link that mentions T and M1 codes. Not sure if it will help.

    Looking at that I'd infer she's just left a 100k + per year job!


    https://www.lovemoney.com/guides/15060/how-to-check-youre-on-the-right-tax-code-2019
    • BoGoF
    • By BoGoF 3rd Dec 19, 8:42 PM
    • 5,557 Posts
    • 5,569 Thanks
    BoGoF
    • #4
    • 3rd Dec 19, 8:42 PM
    • #4
    • 3rd Dec 19, 8:42 PM
    I would think HMRC are trying to split the tax free allowance between the 2 sources to ensure no tax will be paid.

    Suggest she logs onto her personsl tax account and ensures estimates at each source are correct.
    • Dazed and confused
    • By Dazed and confused 3rd Dec 19, 9:17 PM
    • 5,692 Posts
    • 3,021 Thanks
    Dazed and confused
    • #5
    • 3rd Dec 19, 9:17 PM
    • #5
    • 3rd Dec 19, 9:17 PM
    T tax codes are most commonly used when a second job or pension has some of the tax code allowances from the main job or pension allocated to it.

    Use of the T suffix means the employer/pension payer won't automatically add any increase in the Personal Allowance when the next tax year starts. If the code was 375L any increase in the Personal Allowance would be duplicated, once at the main job/pension and again at the second job/pension.

    As BoGoF says highly likely to be simply that HMRC are splitting the tax code between the two pensions.

    M1 means the code is to be used on a non cumulative basis. The employer/pension payer will use this tax code going forwards and not take into account any payments earlier in the tax year which may have had a different tax code used.
    • AnotherJoe
    • By AnotherJoe 3rd Dec 19, 10:16 PM
    • 16,378 Posts
    • 19,678 Thanks
    AnotherJoe
    • #6
    • 3rd Dec 19, 10:16 PM
    • #6
    • 3rd Dec 19, 10:16 PM
    I would think HMRC are trying to split the tax free allowance between the 2 sources to ensure no tax will be paid.

    Suggest she logs onto her personsl tax account and ensures estimates at each source are correct.
    Originally posted by BoGoF

    Thanks I'll do that.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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