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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Code to 05 04 2015 684 T ,Received new T A X Code today for

Resolved Question:

Code to 05 04 2015 684 T ,Received new T A X Code today for year to April 05 04 2016; only change in my circumstances, Wife died 07 08 2014 previously notified, increase in retirement state pension and civil service pension also known, means drop in income of£66.13 per month. My date of birth 01 10 30 too old to work; can you advise please?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me what is in your new tax code in terms of allowances and deductions please.
Customer: replied 2 years ago.

Gross amount £600.49 income Tax £77.20 Voluntary deductions £ 2,88. Total £601 53 less £79.68 Payable £521.85. Per month.

Expert:  TonyTax replied 2 years ago.
Thanks.

You've given me your pension details. You also told me what your 2014/15 tax code was, 684T. What is the 2015/16 tax code as shown on the payslip or the tax code itself? If you have the actual tax code sent to you by the tax office, can you tell me what is in it please. What is the weekly rate of your state pension? Do you receive it monthly (12 payments a year) or four weekly (13 payments a year)?
Customer: replied 2 years ago.

T A X Code for 2016 received today is 256 Y State pension is collected weekly at postoffice cash machine Truro £152.16.. Thank you for your help.

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.

Hi again.

Your tax code should be 274Y. You have a personal allowance of £10,660 from which you deduct the state pension of £7,912 (paid gross but taxable) to leave you with net allowances of £2,748. That converts to a tax code of 274Y. You are on a tax code 256Y which is about £180 lower in terms of allowances. The difference may be due to HMRC estimating your state pension differently. Call the tax office on the number here and ask them to check the figures.

You also won't be entitled to the married couples allowance for 2015/16 as your wife passed away in the previous tax year. The loss of that allowance will have increased the tax deduction significantly I'm afraid.

On a tax code of 274Y, you would pay tax of £74.30 per month.

I hope this helps but let me know if you have any further questions.

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