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Where Taxpayers and Advisers Meet

Tax codes

seanpk
Posts:1
Joined:Mon Jun 17, 2024 2:52 pm
Tax codes

Postby seanpk » Mon Jun 17, 2024 2:59 pm

I have 2 part time incomes and a pension on different tax codes:

.......Monthly Code Allowance
PBB 1100 186 1860
USS 903 1070L 10700
CEM 738 BR 20(%)

Does it matter which income is on which code and does HMRC 'optimise' which is which?
Or does it all average out and is not an issue?

Cheers

D&C
Posts:170
Joined:Mon Nov 25, 2019 11:35 pm

Re: Tax codes

Postby D&C » Thu Jun 20, 2024 12:53 pm

Ultimately it's unlikely to make any difference, although there are some ways that are better than others.

For example you wouldn't want tax code at CEM to be 1070L and USS to be BR as you wouldn't get the benefit of all your tax code allowances during the year.

You would automatically get a little refund from HMRC after the end of the tax year, but that money is better in your pocket each month than having to wait for it later.

It could be argued you would want tax code 1083L at USS, so no tax was paid, and code 173T at PBB but it's swings and roundabouts really. You would pay the same tax overall just might be cleaner in some people's eyes.


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