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Where Taxpayers and Advisers Meet

Tax code 6T 1st April - is that right?

Wilburforce
Posts: 2
Joined: Wed Apr 05, 2017 3:10 pm

Tax code 6T 1st April - is that right?

Postby Wilburforce » Wed Apr 05, 2017 3:36 pm

Last year was my first self assessment as I earned over 100K and I had a 3.5K Tax bill, so I want to make sure everything goes better this year.

I am sure I did not complete the Self assessment correctly...last time maybe why i had the bill.

This new year 17-18, I have two incomes (i) Work code:T6 (ii) military pension code:D0

Military pension D0
7.5K

Work (old job)
2015-16
P45 stated
£95.4K
P11 £2500 medical.

Note:
Pension contribution £300


This morning I told the tax man I had the following income, but I am not sure if I need to declare the Bonus, as its not guaranteed.

Basic pay: 84.5K
Car allowance: 8.4k
Bonus: 16.9k
Medical: 2k
Total 118.875

1. Do I need to include my bonus to obtain the Tax calculation
2. When I start my company pension scheme say £400 per month - (company match it) can I came any tax back? I did not claim anything back last year

Regards,
Paul

SteLacca
Posts: 444
Joined: Fri Aug 07, 2015 2:17 pm

Re: Tax code 6T 1st April - is that right?

Postby SteLacca » Thu Apr 06, 2017 1:22 pm

Your tax free allowance of £11,500 will be reduced by £9,437 owing to excess of income above £100k. In isolation this would reduce your tax code to 206L. It's probable that HMRC have also further reduced your tax code in respect of benefits in kind, so no reason to believe that the code is wrong (other than the fact that tax codes are rarely 100% reliable except for the most straightforward cases).

Whether or not you can claim tax relief on pension contributions, if they are paid via a company pension scheme they are likely to be paid under the net pay scheme, meaning that contributions are deducted from gross pay before tax. This effectively gives you tax relief at your marginal rate, and no further claim is needed.

Wilburforce
Posts: 2
Joined: Wed Apr 05, 2017 3:10 pm

Re: Tax code 6T 1st April - is that right?

Postby Wilburforce » Tue Apr 11, 2017 7:02 pm

Really appreciate your answer.
Thank you.


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