Tax codes and tax matter

  SparkyJack 17:22 03 May 2011
Locked
Answered

As usual tax codes re coming around - and as usual the notes are obtuse and mean little - to me at any rate. But this year I got TWO

Then my personal pension provider has started deducting tax on the monthly pittance, not with standing the state pension and private in total come within the personal allowance. I this some skulduggery by G Osborne Esq.?

So before I set fingers to keyboard in a missive to HMRC do you guys have a view on this?

  spuds 17:39 03 May 2011

I think that the first thing that you need to ask yourself - Are the two tax codes the same?.

I have three pensions, paid weekly for the state pension and monthly by two private pension schemes. A fourth private pension scheme is accumulating yearly interest (with profits), until I decide to activate the plan. The tax-man as combined all the pensions, with one private pension provider being responsible for any tax deductions, based on my tax yearly code.

  Forum Editor 18:23 03 May 2011

Rather than send a missive, why don't you phone your tax office? They will be able to advise you - I'm afraid we're not qualified to comment on personal tax matters.

  Grey Goo 19:19 03 May 2011

They deduct the State Pension amount from your taxable allowance, but without knowing all your business it is impossible to make any comments.

  SparkyJack 20:05 03 May 2011

FE wrote 'I'm afraid we're not qualified to comment on personal tax matters.'

I do appreciate Peter perhaps your remark in defence of this forum giving unqualified advice.

I seek similar experiences- that is not advice

Spuds came up something useful for which I thank him.

  Fruit Bat /\0/\ 20:34 03 May 2011
Answer

Yes got two but ended up with a third due to "retirement"

First pre budget

Second post budget

Third base on pension and yes tax is deducted by pension provider before it gets to my bank.

Probably get a fourth as my new business starts next week ;0)

  SparkyJack 11:23 04 May 2011

Thanks FB May be worth totting up the totals of all sources and see it the answer falls within your personal allowance.

  oresome 11:38 04 May 2011

Don't forget other possible sources of income that the taxman would like to share with you.

Extract from HMRC site:

Your taxable income includes:

•all pension income (including State Pension)

•employment/self-employment income if you keep working

•almost all bank and building society interest (the 'gross' amount, before tax is taken off)

•dividends (income from shares)

•income from property after expenses - but not the first £4,250 if you rent out a room in your house

•income from abroad (overseas pensions have a 10 per cent deduction so you are only taxed on 90 per cent of the total amount)

•some benefits, including Carer's Allowance, Employment and Support Allowance and Incapacity Benefit

If you're married or in a civil partnership and have income from savings, investments or property held in joint names you're usually treated as getting half the income each. So you only have to pay tax on your half. If you're not married or in a civil partnership you count only your share of joint income.

  anchor 16:42 04 May 2011

The FE is correct; (as usual).

Phone your tax office, fully explain matters and if, as you say, your total income is below your allowances, ask that the code be adjusted.

I do this each year, and have always found the people in the tax office most helpful.

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