chris F

Hello, this is my first post and I can’t see where one starts a new question, so apologies if I am gate crashing this one!!! I work in the NHS part time at 18.75 hours a week, after retiring two years ago. I have a pension of about £32,000 and a part time wage of about £29,000. This obviously puts me in a higher tax threshold. I also rent out a property bringing in £6,000.00 before expenses. What I don’t understand is, how my tax is worked out. I did briefly talk with HMRC, who tried to explain that there was not a tax code that covered both my pension and my part time wage, so they tax one or the other at a high rate and not the other. To be honest I had no idea what they were on about??? What I do know is, when I log on to my online HMRC account, it says I start paying tax after earning £1,375.00. I thought we all had earnings free of tax until we earned £12,570.00. I really don’t understand why I am paying tax at such a low level of earnings. I hope this makes sense, because it makes little sense to me, even when I read it back!!!