Personal Allowance - New Tax year

[thekingisdead]

After I completed my tax return for the 2018/19 year, my personal allowance was increased, to return the 20% tax relief (higher rate payer) for SIPP contributions.

Now that we're in the new tax year I've checked on my latest payslip and my tax code is still above what I'd expect it to be (i.e not 12500L).
Is this correct? I'd assume HRMC would re-pay any money within one tax year and then start the new tax year on the standard personal allowance?

I'm PAYE and have no other special allowances - car, health benefits etc.

[Squiddly Diddly]

Tax refunds are usually paid direct to the tax payer.

Did you elect to have it added to your tax code?

[bogie]

If its an ongoing regular payment to your SIPP (or at least thats what HMRC assume) then they adjust your tax code to allow for it in future,effectively giving you more cash in your pocket each month.

if you made a one off SIPP payment last year and they refunded you, then do tell them it was a one off and not regular, then your tax code will go back to normal.

You just need to call them and tell them so they dont just go on an assumption.

[thekingisdead]

thanks.

Does anyone know why the amount to be returned isn't subtracted from the extra that was owed / paid to HMRC from a rental income?

Seem's crazy to me that it has to be done in two transactions - rather than subtracting one from the other.

Cheers,

[bogie]

It should all be done in a single calculation and you are usually notifed of how by a coding notice that comes through the post, or you view it online if you complete self assessment.

A phone call to HMRC will answer your question if you have not received a coding notice that explains how they have calculated your tax code.