Tax code question
Options
Comments
-
Until you are willing to tell us how the 308L tax code is calculated there is little more anyone else can do to help.0
-
Just correcting your post for you thereDazed_and_confused wrote: »Until you are able to tell us how the 308L tax code is calculated there is little more anyone else can do to help.
Thanks though.0 -
Does this help any?...Dazed_and_confused wrote: »Until you are willing to tell us how the 308L tax code is calculated there is little more anyone else can do to help.
She received paperwork this week for the upcoming tax year which puts her tax code for my dads pension at 404L with an allowance of £4043 tax free and her employment at 845T with an allowance of £8457 tax free.
As far as i'm aware the upcoming tax year appears correct? Though that doesn't explain the current tax year.
Do any of those shots help?0 -
We're nearly at the end of February so resolving the tax overpayments for this year is not going to be possible by the end of the tax year. Get your mother registered for the online self assessment service and complete her tax return once she has received her form P60s, which she will receive by May at the latest.0
-
Interesting update.
In your original post you said,Tax code on the pension slips: 308L M1
The screenshot shows the pension tax code to be 539L.
First question seems to be why the pension company is using 308L instead of 539L.
If 308L superceded 539L then what is the breakdown of 308L.
And with all due respect to LilElvis there is absolutely no need whatsoever to contemplate filing a Self Assessment return in this situation.0 -
The original post is obviously the accurate one since that was made in February with the most up to date details. She's had a look through to see what paperwork she has relating to tax codes and some/all of it is dated (in the sense that it's this tax year but still months old).Dazed_and_confused wrote: »In your original post
I know i've blanked out some sensitive info as well as some non sensitive info but i left the date in on the photo which shows as August 2018 ... 6 months ago.
So at some point between then and now her tax code must've changed for some reason. Perhaps linked to the final DLA payment being in September? I don't know i'm totally guessing.
I know we're running out of time to 'get this sorted' before the end of the tax year but if she's ended up overpaying then at some point she's due a refund. I dare say they wont be as quick to volunteer a refund as they will be to get in touch to say you owe us money.
Who is it that she should be contacting for an explanation then? She's called the tax office who just say your code is correct. Just seems an awful lot of tax being paid so who else should she contact?0 -
If she contacted HMRC did she ask for the breakdown of the 308L tax code?
And can you provide upto date details of all her taxable income in the current tax year?
Specifically how much tax has been deducted from the pension
Without that sort of detail it is all guesswork.
We know the ESA value per your P45 screenshot but what about the job and pension? Each payslip should show the taxable amount so far in the current tax year.0 -
Dazed_and_confused wrote: »Interesting update.
In your original post you said,
The screenshot shows the pension tax code to be 539L.
First question seems to be why the pension company is using 308L instead of 539L.
If 308L superceded 539L then what is the breakdown of 308L.
And with all due respect to LilElvis there is absolutely no need whatsoever to contemplate filing a Self Assessment return in this situation.
My suggestion is based on the frustrating number of phone calls and notice of coding screw-ups it took to sort out my father's tax code when he was both employed and drawing a pension - completing a self assessment is a doddle in comparison.0 -
I'll have to speak with her so it'll probably be Monday/Tuesday before i get that.Dazed_and_confused wrote: »If she contacted HMRC did she ask for the breakdown of the 308L tax code?
And can you provide upto date details of all her taxable income in the current tax year?
Specifically how much tax has been deducted from the pension
Without that sort of detail it is all guesswork.
We know the ESA value per your P45 screenshot but what about the job and pension? Each payslip should show the taxable amount so far in the current tax year.
She must have only just started paying tax on the pension because she asked me about it shortly before i made this thread as she didn't think you paid tax on pensions.
Now obviously we know that it is possible that you may end up doing so but the point is that she must have only recently started paying tax as she's only just questioned it.
She sent me a photo of her pension 'payslip' which was current up to January's payment...
Under 'Taxable pay' ...
'this period' shows as 336.92, 'to date' shows as 3366
'income tax' shows as 15.80 for this period, 'to date' also shows 15.80 (to indicate she's only just started paying tax).
I have a payslip from her employment current up to December 2018. I'd have to see her if you needed January's and i don't think she'll have yet been paid for February.
Total pay shows as 5802
Taxable shows as 5802
Tax shows as 1022
NI employee as 275
NI employer as 316
NI pay as 5802
I'm missing off the pence and just rounding to the pound.0 -
Ok now we're getting somewhere.
Looking through this thread it seems she has three sources of taxable income in the current tax year,
ESA £2,103 (this is from the P45 screenshot rather than the tax code or the post where you quoted £2,212.80)
Wages £5,802 (to December 2018)
Pension £4,040 (assuming two further payments of £336.92 are made)
Total taxable income £11,945
The tax due on that would be £19 although obviously the actual wages are likely to be higher so more tax will be due.
I think the following changes are needed to the tax code for the pension,
Deduction for ESA should be £2,103 (or HMRC could explain why £2,172 is correct (which it might be))
No adjustment for estimated tax you owe this year is required
This means total tax free amount is £9,747 not £7,451.
The tax free amount should then be split £4040 to the pension and £5,707 to the job.
The new tax codes would be 404L (pension) and 570T (job).
These need to be sent to the pension payer and employer on a cumulative basis.
The pension payer would then refund the £15.80 (or possibly £31 after February payment) tax deducted when they make the March pension payment and the employer would refund some of the £1,022 tax already deducted although the exact amount will depend on what she has earned (and any extra tax deducted or refunded) since December.
All of the above is on the assumption there is,
No undisclosed taxable income
Nothing new in the make up of the 308L tax code
A crucial element in persuading HMRC to issue a revised tax code is for you to let them have accurate estimates of the pension and wages in the current tax year. The pension seems fairly clear cut given your latest post (obviously your mum should know if exactly £336.92 will be paid in February and March) but the later payslips will probably help get an accurate estimate for the job.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards