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New Tax Code

jmd
Grafter
Posts: 2,933
Thanks: 2
Registered: 30-07-2007

New Tax Code

I got a letter this morning with new tax code.  HMRC are kind enougfh to recognise that my age changes during the next tax year but have not given me the tax code expected for that because they seem to think that on my state pension and occupational pension I earn more than £28930 per year!  I did not even earn anything like that amount when I was employed never mind retired. Shocked
So now I have to try and contact them to tell them that I do not receive anything like that!
But just realised that information is on back of letter and many people may well miss that and not realise they need to get in touch and query this.
Having read the previous posts we had on this some time ago [which could not find now] it is obvious that people did not realise that the tax allowance changes for the whole year you are 65 in, so seeing the tax allowance for under 65 would be expected.  Fortunately I do read the whole of letters, and having seen the previous posts  am aware of this change.
12 REPLIES
nadger
Rising Star
Posts: 4,498
Thanks: 46
Registered: 13-04-2007

Re: New Tax Code

I assume that £28,930 is the point where additional age relief is cancelled out.
Good luck with the phone calls and let's hope you get someone with a brain on the other end of the line.
alanf
Aspiring Pro
Posts: 1,931
Thanks: 77
Fixes: 1
Registered: 17-10-2007

Re: New Tax Code

If tax man knew your DOB he should have sent you a P161 form.
http://www.hmrc.gov.uk/pensioners/approaching-why.htm
Community Veteran
Posts: 18,542
Thanks: 190
Registered: 12-08-2007

Re: New Tax Code

My phone contacts with HMRC have always been good.  I have no problem getting through to them early in the morning around 8am or after 6pm at night.
Generally they have sorted things out for me on the phone and then confirmed with a new code notification.
jmd
Grafter
Posts: 2,933
Thanks: 2
Registered: 30-07-2007

Re: New Tax Code

Quote from: alanf
If tax man knew your DOB he should have sent you a P161 form.

well, I completed that when I retired 4 years ago!  and they must know my date of birth if they recognise I reach 65 in next tax year!
Have not been able to get through on phone - it keeps saying they are too busy please ring again!  perhaps others have had same problem?
Community Veteran
Posts: 18,542
Thanks: 190
Registered: 12-08-2007

Re: New Tax Code

@nadger, this will explain the way the age related allowance is adjusted.  This tax year the limit is £22,900 but increases in 11/12 to £24k..
Age related Tax
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: 07-04-2007

Re: New Tax Code

I wonder if the age relate tax allowance would be remove completely to recoup the money which the older population have received from the state?
Quote
Those aged 65 have received £220,000 more from the state than they paid in.

http://www.bbc.co.uk/news/business-12758367
Community Veteran
Posts: 18,542
Thanks: 190
Registered: 12-08-2007

Re: New Tax Code

Well it's certainly been increased for the next tax year Smiley
jmd
Grafter
Posts: 2,933
Thanks: 2
Registered: 30-07-2007

Re: New Tax Code

Eventually managed to get through on phone and spoke to a very polite male who stated that as my age changed during tax year they could not assume that the age related allownace was applicable so therefore the system assumed that my income was high, but now I had been good enough to phone in and confirm that my civil service pension was not that much at all, he would now amend the code to correct amount and send me a new tax code [and also to my pension providers so next month's amount would be correct] in post.
How stupid to assume that everyones income is high!
So it pays to read letters thoroughly, and read this Forum too!
But I feel sorry for anyone who does not read whole of letter but just look and think it is just tax code and like I said not be aware the code changes for whole of the tax year you get to be 65 in so therefore check that it is corrrect allowance.
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: 07-04-2007

Re: New Tax Code

But they would not be any worst off and they could get a tax rebate at the end of the year, which could be a pleasant surprise.
Community Veteran
Posts: 6,735
Thanks: 12
Registered: 02-02-2008

Re: New Tax Code

I always do my best to "manage" HMRC so that any bills or repayments are minimal.
I've found, through bitter experience, that if you let things "drift" it can take years for corrections to work out of the system.
Not only that, but they tend to roll any "adjustments" from one year to the next on the (usually wrong) assumption that they'll need to continue to correct things.
Best not to give them the opportunity in the first place.  Wink
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: New Tax Code

yes they will give you a refund, I got a hefty one last year, that wasnt really explained, and I got a very short note this year saying my state pension is going against my allowance and they are passing the small amount left onto my Works pension, who they had the address for
Must be a good business though as I have so far got six Spam e-mails from USA offering to get back my refund if I tell them my bank details
Ellis
Grafter
Posts: 213
Registered: 04-02-2011

Re: New Tax Code

Never mind getting six emails about getting tax back, I've got three tax codes and I don't even pay I/c Tax.