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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I HAVE A PENSION THAT HAS A TAX CODE OF 221L. I ALSO RECEIVE

Customer Question

I HAVE A PENSION THAT HAS A TAX CODE OF 221L. I ALSO RECEIVE AN ANNUITY WITH A TAX CODE OF BR. CAN THIS BE CORRECT TO HAVE TWO CODES? I ALSO RECEIVE STATE PENSION.
REGARDS
JAMES HAILS
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. If you have more than one source of PAYE income, you will have more than one tax code. If you can let me know the amount of pre-tax income you recived from each of your three pensions, I will check your tax codes.
Customer: replied 1 year ago.
P60s for last year.PENSION PRE - TAX £14,875.51. ANNUITY £5,535.96.
INCOME FROM DWP £664 PER MONTH
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
If your state pension is paid on the same date each month, ie on the same date subject to weekends, then you will receive £7,968 in a full tax year (£664 x 12) which will leave you with a net personal allowance of £3,032 when it is deducted from the personal allowance of £11,000 (£11,000 - £7,968) which converts to tax code 303L. If your state pension is paid every 28 days, then you will receive around £8,632 in a full tax year (£664 x 13) which will leave you with a net personal allowance of £2,368 when it is deducted from the personal allowance of £11,000 (£11,000 - £7,968) which converts to tax code 236L. The BR tax code on your annuity is correct. Tax is being deducted at 20%. Call the tax office on the number here and ask them to check your 221L tax code to ensure it is correct. They may have a different state pension figure to you. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.