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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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hi I am paying BR on my salary and my personal allowance is

Resolved Question:

hi
I am paying BR on my salary and my personal allowance is put against my Morrisons \pension should this not be the other way round, also I have been taxed £381.20 on earnings of £1129.07 is this correct as it looks a bit excessive and looks as it has been taxed at 40%
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
Your Personal Allowance - your tax-free pay - will normally only apply to your main job or pension.
You are given a 'BR code' for your second job or pension - this means that you pay basic rate tax on all your income from this employer.
You can share your Personal Allowance across several jobs or pensions but only if your income is low enough to allow that. If you don't pay tax on your earnings from your pension and you're not using all of your Personal Allowance you can tell HMRC to use what's left in your second job.
Example from HMRC: your Personal Allowance is £10,000 (tax year 2014 to 2015) and you have PAYE income from two jobs - income of £3,500 from your main job and income of £1,500 from your second job. You can tell HMRC to use £6,500 of your unused Personal Allowance (£10,000 less £3,500) from your pension against your income from your second job so that you don't have to pay tax on either income.
Your pension is more so it is your main payment.
It was correct for HMRC to have your allowance on your pension though.
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