Tax rate when you have two incomes.

[BARNEYRNSM]

My Oppo and I are both in receipt of a pussers pension of £9500 a year plus a wage £42000 a year. His tax code is 748L and mine is 521L. Considering the first £11500 is tax free, how can our tax codes be so low? Does anyone else suffer like this? Our pensions are being taxed at D0. We are in the same occupation and our tax codes change about 3 to 4 times a year.
I self assess, my oppo doesn't.
At 55, when our pension goes up by £9000 a year(ish), would we be better off putting that straight into our pension pot from our pay, reducing our tax burden?
Anyone do anything similar? Its the middle watch and we have nothing better to worry about!!

 

[Sumo]

Low? Mines 248l used to self assess but phoned up and said my only income is pussers pension and PAYE salary, they took me of self assessment, mine has been all over the place since I left mob?

 

[BillyNoMates]

Letter received in a brown envelope from HMRC dated 20th September 2017.

Dear Billy,

Tax calculation for the year 6th April 2016 to 5th April 2017.
You have paid too little tax. You owe HMRC £662.20p.

What!!??

I'm P.A.Y.E. so how the gosh darned heck did this come about?

The robbing pricks will now collect this money by increasing the tax deducted from my wages
in equal instalments for 12 months commencing April 2018.

Not overjoyed to discover that I owe the government money and I presume it's due to the
fact that monthly salary fluctuates when I put in shed-loads of overtime?

HMRC's "explanation" of this on page three of the letter states (and I quote):

Explanation

Too little tax paid:
---------------------------------------------------------------------------------------------------------------------------------------------------

We have completed a review of your tax position. We have worked out you have paid too little tax.

(unquote).

That's a top class explanation. If I do not "self-assess" then surely it's my pay geeks that should
get it correct in the first place.

Information on how to start dripping in the relevant ear-holes would be greatly appreciated.

Cheers,

B.N.M.

*Note*

Been on a Google hunt and I've just found something........

http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/943-extra-statutory-concession-a19

 

[Sumo]

Billy totally agree, I don't do overtime so salary and pension stays flat they say I am still paying back from their cock up years ago?
I think they employ all the failed maths at school care in the community thicko's who look at a computer screen and believe what it tells them, forgetting crap data in = crap data out. My son on the other hand keeps getting rebates, they will catch up with him one day?

 

[BillyNoMates]

 

[janner]

Don't forget that you can claim around £1000 against your other halfs tax allowance if they don't use it all themselves, it's worth a phone call.

 

[Sumo]

Don't forget that you can claim around £1000 against your other halfs tax allowance if they don't use it all themselves, it's worth a phone call.

need to make that call

 

[Taztiff]

Billy totally agree, I don't do overtime so salary and pension stays flat they say I am still paying back from their cock up years ago?

Same with me. This year my tax code is around 600 because I apparently didn't pay enough tax. Bollox to all of em.

 

[Big O D]

I have the same problem, I have two pensions and a salary and every year I get a tax bill, one year I was told I owed 2600 and paid it back over the year only to be told I owed a further 800, when I queried it I got a rebate of 1800. The bloke on the phone said it was the computer that couldn't get to grips with more than one income, he said that if they did it manually it would be fine, I asked the obvious question but he said they weren't allowed to. Nobheads

 

[Seadog]

https://www.uktaxcalculators.co.uk/

Some manual calculations may be required if part of your income attracts National Insurance contributions.

 

[ratsroden]

My Oppo and I are both in receipt of a pussers pension of £9500 a year plus a wage £42000 a year. His tax code is 748L and mine is 521L. Considering the first £11500 is tax free, how can our tax codes be so low? Does anyone else suffer like this? Our pensions are being taxed at D0. We are in the same occupation and our tax codes change about 3 to 4 times a year.
I self assess, my oppo doesn't.
At 55, when our pension goes up by £9000 a year(ish), would we be better off putting that straight into our pension pot from our pay, reducing our tax burden?
Anyone do anything similar? Its the middle watch and we have nothing better to worry about!!

Depends if Labour gets in again.

 

[BillyNoMates]

I have to input information into HRMS for absolutely everything. Hours worked, Public Holidays claimed for, time off in lieu (TOIL) of payment, sickness, annual leave, overtime payment requests....ya de ya de ya.
Shiftworkers often get screwed over because the "system" is not available
at weekends, PH'S, or is just simply fu**ed. The "cut off" point for inputting requests for pay each month is ridiculous, last month (September) was the 12th. Sometimes we can get all the required information in....sometimes not. This creates a backlog of claims which often gives us a big whack one month and a lower salary the next. Personnel can go from...say £2,000 one month up to £3,000+ the next. Not being tax experts, we rely on pay sections and the like to get it right in the first place. A six hundred quid "Oops!" from HMRC may not seem like a lot, but it's a ball ache nevertheless.
Personally, I can see no reason whatsoever to have to do any form of extra calculation with regard to the rate at which I am taxed on any of my current salary or pension. That is someone elses job, and I am still pissed off about it.

Yours Aye,

BillyTheWorkerBee

 

[BillyNoMates]

Footnote to the above:

Bollocks to it. I'm retiring in July 2019 and then I'm going to become a professional benefits cheat.

 

[BillyNoMates]

Footnote to the footnote:

Google this:-

hmrc wtf

(include the space)

BNM