I Am Spitting Feathers About My Tax Code!

[Tilly2]

It has gone down again and I am now getting less of my Teachers' Pension than I was last year.

I worked hard for that! &*((%^!"£$%. :-(


I don't do rants, usually, but I am fuming.

[wolf63]

I have a civil service pension and there has been no increase this year :-(

However I started getting it when I was forty so I shouldn't moan

[fiction-factory]

Tax allowances have gone up so there must be another factor. I assume you are not getting state pension yet. Is all your tax code applied to the teachers pension or is there another source of income that has some tax code now?

[Peter Pedant]

the usual explanation is that you have an income more than the pension
and so the tax men ..... intent on getting their full bit before April 5th 2017 ( yes 2017 ) have a go at the PAYE bit of the pension

if you are retired andhave various sources of income then you may well have different tax codes for each one

comes out in the end - I imagine you do a tax from every year

[Tilly2]

I am getting my State pension, FF. That has increased but it has not increased to the full amount of £155 a week, due to TP 'opting out' somewhere along the line.

Swings and roundabouts, I know, but I am mad about my TP net payment going down for the next year.

[Tilly2]

PP, I have never filled in a tax form. I have never been sent a tax form.

[fiction-factory]

Yes, the state pension is counted as part of taxable income. Presumably you didn't get it for the whole of last year but you will receive it throughout this year so that will reduce your tax code for your TP

[Peter Pedant]

well if you think you are overpaying tax
thenyou should do one
and I think you can go back six years

and of course the law says that you should ask for a tax form if you think you need it and not that they send it to you ( but I bet you knew something like that anyway )

[Captain2]

Seriously Tilly? My Tax Form has landed on my doormat on April 5th for the last 40 odd years

[Peter Pedant]

of course a pension is taxable .... it is income !
come on boys and gurlz

[Tilly2]

......and, for some strange reason I have unpaid tax of £84, which has affected my code......how did that happen?

[fiction-factory]

Yes, many who were contracted out will not get the new 'flat rate/minimum' pension of £155 pw because they had contracted out of the state second pension and therefore paid less NI. Depending on your circumstances though you could still be getting more state pension than you would have got in state pension last year.

[Tilly2]

Seriously, Captain. My tax has always been paid through PAYE. I have never filled in a tax form.

[Prudie]

I have never had a tax return form either, assume it's because I've always worked in the public sector. One job,always taxed at source.

[Tilly2]

My State Pension has increased by £4.00 a week, FF. I am just upset about my TP being less.

[Tilly2]

Thanks for the back up, Prudie. I appreciate that. I thought I was going funny!

[fiction-factory]

They will tell you about the £84 tax. It may well relate to state pension from last tax year.
Captain- i used to get a tax form every year without fail as did mrs F-F. I think it was automatic for anyone who was on 40% tax, but those stopped about 10 years ago for both of us (maybe in my case because I come nowhere near the 40% threshold now).

[tonyav]

I get a letter from the taxman with a new code every year but never a form to fill in.

[fiction-factory]

Your TP isn't less of course, but I know what you mean. It's better than in your last few years of teaching though when salaries were usually frozen for a few years but pension contributions went up by several %. Still, the Teachers Pension has been a great scheme and will be giving you a much better return than those outside public sector. (My employer now pays a measly 1% into my workplace pension!)

[ubasses]

Add together your total teachers pension, state pension and any other earned income for the last tax year. Take away your tax allowance of £10600. multiply the balance by 20% and that will be the amount of tax you should have paid last year. You can then compare that with what you have paid and see if there is an £84 discrepancy.
Unless that your taxable income exceeds £31785 when anything over that amount will need to be multiplied by 40%.
If you are anywhere near the 40% figure take into account any savings interest as that will only have had 20% deducted.

[Tilly2]

I hate ringing the Tax Office about problems. I honestly never know what they are talking about.

( I must get out of my little bubble)