How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Nicola-mod Your Own Question

Nicola-mod
Nicola-mod, Moderator
Category: Tax
Satisfied Customers: 11
Experience:  Moderator
73944119
Type Your Tax Question Here...
Nicola-mod is online now

I would like to know how the tax code number works. In April

Customer Question

I would like to know how the tax code number works. In April this year I was issued with a tax code number of 944L, which I assumed was correct for my Civil Service pension. In June[4th] I became 65, which allowed me to receive a State pension, I then received a new tax code of 236L. Surely this means I shall be paying more income tax than when I was in full time employment earning thirty thousand plus, as I'm receiving less than twenty five thousand with both pensions, it seems I am being penalised for collecting my old age pension.
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your question

 

Whilst it seems you are paying more tax, the change to the tax code allows the state pension to be paid tax free (in essence) as whilst state pension (as well as your Civil Service pension) are taxable incomes, tax cannot be directly deducted from the state pension, so its covered fully by your entitlement to tax free allowances, first, then leaving the balance of unused allowances to be used against your Civil Service pension.

SO if you compare the tax you pay at this time each month x 12 and then compare it with your last P60 from the Civil Service, you will find the tax you pay is less per month/ year, as the income you receive is less per year.

 

HOWEVER as you have turned 65 your tax free allowances should not be £9440 but increased to £10,500 so this does need to be rectified by HMRC so ring them and ask them to review your tax free allowances, and increase them accordingly.

(Please note that age related allowances are being phased out, but will remain at £10,500 until the personal allowances - which are currently at £9440 are in line with this amount, then there will be just one amount of personal allowances awarded for all)

 

Please do feel free to ask any follow up questions, but if you are satisfied with the service I have provided, then please, could I trouble you to rate the level of service I have given (as this ensures Just Answer pay me )

 

 

 

Thanks

 

Sam

 

 

Expert:  Nicola-mod replied 3 years ago.
Hello,

Just a quick reminder, there is an unrated answer waiting for you here from the Professional.

If the Expert was helpful, rating their answer as satisfactory transfers your deposit to them – this is how the Expert is compensated.

To rate your answer, you can go to your question page, and click one of the five faces below your Expert's answer. Please be sure you are logged in with your username and password or you will not be able to view or rate your answer.

If you still need help with your question, please feel free to reply to the Expert on this question page. You may ask as many follow-up questions on the same question page as you need until you are satisfied.

Thank you,
Nicola

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions