David Lock

In the last tax year my wife had a part time job and earned £1500 in the year but no tax was deducted.

She also received a NHS pension of £7827.27 gross and paid £1384.00 in tax with Final Tax Code of 90L (???)

So has she paid too much and, if so, how do we get it back please?

I made the big mistake of mentioning to her that she may be due a bit of cash Should have kept quiet!!

Thanks, David

Chip

David

As her tax code is so low I think she may have paid too little rather than too much.

Try this: Free UK PAYE Income Tax Calculator 2009. Updated for 2009 / 2010 tax year..

Cheers

Chip

NotoriousREV

Actually, if that tax code is right, she's underpaid her tax. I think the question you need to ask is why is her personal allowance so low?

NotoriousREV

Are you both old enough to get married couples allowance (born before 1935)? That may explain her low code. You need to speak to your tax office, really.

Chip

I know David is one of the more "senior" posters on here but I dont think he's that old

Chip

David Lock

Why might her personal allowance be so low?


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PS. I found a y/e 5/5/07 P60 from her employer (£1500 per annum) which shows a tax code of 503L. I am now completely confused

David Lock

Thanks Chip I think "mature" is a better description!! We are both in our early 60s.

I do have a self employed business and I wonder if Diana's allowance has somehow been used to offset the business tax due???

I don't want to call the tax office just to tell them we may owe some tax!!

Young David

Chip

David,

Look up where your local IR office is based. They normally have a tax advice centre and are usually very helpful.

Chip

NotoriousREV

If they change your tax code from the standard personal allowance, they usually send out a notice that explains why. Any chance it's been filed and forgotten about?

I didn't think you were pre-1935 models but I thought it was worth asking. I've always found the tax offices to be very helpful and if her tax is wrong either way it's best to sort it now before it gets out of hand. If she's underpaid tax they'll just alter her code to collect the extra, they won't demand a lump sum. That may be the reason they've altered it to 90L in the first place. If her pension company has been paying the tax assuming they're her only source of income and her part time job hasn't been deducting tax at all, then she's probably behind already.

David Lock

OK, thanks guys.

I'll make some calls tomorrow.

I just thought everyone had a tax free allowance of a few grand a year which was fine tuned to take account of circumstances and tax over or under paid. Can't see why it should only be 90L (£900-ish) though. There aren't any income skeletons that I know of.

Feeling older now David

Dedrater

A 90L code will most likely mean your wife owe's tax, there are many reasons why this happens, one reason for example is because your wife received some type of benefits and this has reduced the minimum allowance for a state pension.

"L" just means she is entitled to a personal tax allowance, there are 5 other suffix codes, with T (temp tax code) being the only one that would be relevant.

Personal tax allowance is now £6,035 for the 2008/09 tax year.

It will be worth phoning them up though, who knows, the tax code might be in error and you are owed a rebate.

David Lock

Some good news I think.

When her NHS pension kicked off she was sent a letter (allegedly) asking about other pensions including state pension. Apparently we ignored this (not deliberately I might add) and Tax Office assumed she was receiving state pension which is around £4700 per annum.

In fact she gets zero state pension as she is told she didn't do the minimum qualifying 10 years working in the NHS (she did and this is the subject of another dispute!).

So her tax code assumed she earned quite a bit more than she did. Hence 90L.

I can now look forward to a whole pile of claim forms to complete but could be some dosh in a few months

dl