HMRC and Single Persons Tax Allowance of £9490

As a single person, I have just received my new Tax Coding for being 65 now. My Tax Coding is the over 65s, ie:- £9490 allowance. As I am also in reciept of State Pension of £5,987-00 per annum, the HMRC have decided that my new Tax Coding for my main County Council Pension will be £3503 turned into Tax Code of 350T.

(This is arrived at by subtracting the £5987 of the State Pension from the £9490 single eprsons' allowance, giving a personal Tax Allowance of £3503). Very generous of the Tax man!!!

I queried this via 'phone this morning soon after 8 am with HMRC Telephone Help Centre this morning. I spoke with a person, and they tell me that the Tax Code I have been issued is correct? I mentioned this to a friend of mine, and they reckon the Tax Code is wrong, it seems a tad on the high side.

So I wonder just who is right?

After doing some calculations, I find that I am only going to be around £118-00 a month better off. It seems that my State Pension is being 'sort of taxed' at around 75% (Oh Dear!!) I receive £115-00 a week into my bank account (£460-00 a month). But I was not expecting so much Tax to deducted. All a tad strange??

I also recieve a small Pension form the MoD paid by an organisation called 'Paymaster'. My MoD Pension is already taxed at scource.

Have any Forum Members who with other company/organisation pensions, also in receipt of State Pension as a Single Person have the same Tax Coding applied (350T)? Is their Tax Coding correct, or have they gone back to HMRC and queried it and insisted on a correct coding?

If so, where they successful in getting a revised/lowered Tax Coding? Thanks. :?


Book Reviewer
From the information given I'd say 350T looks correct, meaning that you deduct £3505.00 (your new personal allowance) from your County Council pension and pay tax at 20% on whatever’s left over.

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