Tax notice coding for RNR pay?

Discussion in 'Royal Naval Reserve (RNR)' started by spoman, Jan 14, 2010.

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  1. I just got a PAYE coding notice from HM Revenue and Customs today, kindly offering to tax my RNR payments at 40% (which is what I get done for in my civvie job).

    Does anyone know if this is correct..should my civilian income affect the rate of tax on my RNR income? It 's been considerably less than this up till now!
  2. FlagWagger

    FlagWagger Book Reviewer

    Your various income streams are not taxed separately; you are taxed as an individual based on your oveall total income. As a consequence, if you're paying any high rate tax on your main income, all of your supplementary income sources will also attract tax at the highest rate. Basically you only get one tax allowance, not an allowance per job.
  3. Do you know if that mean they could backdate any extra claims if the tax code was incorrectly set to a lower band? That could hurt if can be applied retrospectively!

    Thanks for the reply
  4. FlagWagger

    FlagWagger Book Reviewer

    If you've underpaid your tax, I think they have up to 6 years to recover it. I'm surprised you haven't been hit with having to do tax return forms - somehow or other I was on the the "blood from stones brigade" mailing list for tax return forms from 1984 (when I joined the RNR as a student) until 2009, 3 years after I'd left the country. I'm waiting for 1st April in anticipation of once again being asked to complete yet another tax return despite living and working in Canada as a Canadian tax payer with no links to the UK.
  5. I got the same today, which is a relief because I've been telling them for 3 years now that my tax code was wrong, even sent them p60's and pay statements. the trouble was they where diffferent tax offices and neither would talk to one another, and apparently me telling them they needed to tax me at the higher rate didn't count.

    They now have a new computer system that works on your NI code and puts it into a database which allocates tax code to NI number. now any office that looks you up gets the right code irrespective of where the Pay office is.

    All we have to do is sit back and see if they chase up the money I have been trying to give them.

    It also means that I now take home less than the personnel two ranks below me. Oh the reasons to leave keep mounting up.
  6. My understanding is that Itsamuppet is right on the button.
    It has taken me 7 years to get the Tax office to tax ALL my RNR pay at 40%. As I'm a 40% tax payer in my civvy job, I always ended up with a tax bill at the end of the year, so this is good for me as it requires less admin on my part.

    As an aside, I think that you may be able to claim an overpayment of NI contributions as your RNR pay may well have been "taxed" as if it was your only income (until now) and hence you may have been paying too much NI - I'm not tottaly sure on this as I know that the Govt has raised the upper threshold for NI - so it's worth checking out before you jump for joy.

    Good Luck

  7. New question, same idea.....

    What if you don't pay tax in the UK due to being out of the country for more than 183 days per year, should I be paying BR tax?

    Even with my 24 days RNR I'll still be out of the UK for more than 183 days, anyone know?
  8. TBH, it's about time - it doesn't take a rocket scientist to work out that if my civvy pay goes over the 40% threshold, my RNR pay should also be taxed at 40%. I was getting thoroughly fed up of having to pay the tax man back tax on my RNR pay. Which brings me on to:

    Yes; has happened to me (albeit now 6y ago); they can ask you to produce tax records up to 7y in the past & reclaim underpaid tax over this period.

    IMHO anyone who is a 40% taxpayer especially where they have multiple income streams (eg. civvy work + RNR) should be filling in a self-assessment form to stop HMRC coming after them several years later.

    Technically, this was always the case - you just didn't notice because the extra tax came out of your main tax code the following year (he says being a smartarse)

    This is correct. 11% of all earnings less than £43888pa (technically, £844pw) is deducted as Class 1 NI contributions; above this it's 1%. The RNR pay systemt deducts 11% (although this might change with the new computer system) so if your earnings are above £43888 there is a good chance you will be due some money (though not very much) back - I get sent a form requesting details of my NI contributions 'to assess for overpayment' most tax years.


    Edited multiple times as I thought of other things to add
  9. Tax code for RNR?
    IRdRiPPing [email protected], perhaps?
    Outrage Bus standing by. :roll:
  10. Just talked to the nice people at the tax office and they very helpfully pointed out I've been on DO code for a year now. Really should check my pay chits more carefully. however they did seem to have 2 pay depts for me for the RNR so if your having problems it may be a cock up with them thinking the RN is giving you 2 incomes.
    More importantly they have given me the number to the NI people as apparently the tax office is a seperate dept and don't sort that out.

    0845 302 1479 you obviously need your NI number.
  11. Once I explained to the nice taxman that I was niether in The Beatles nor The Rolling Stones but merely the RNR and therefore not liable for supertax they too changed my DO code :lol:

    How do I claim my eleven minute 0845 telephone call on JPA.......???
  12. Before Christmas HMRC sent me a letter saying they would reduce my personal allowance (JPAC/RNR) for this year to account for untaxed interest last year. Two days later they told me they would be putting it as BR (no allowance). Then a separate letter saying they would BR my civvie pay.
    Most years I end up having to claim back a few hundred overpaid tax and I can't see an end to that any time soon.

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