Good Morning, Help Requested On Tax Codes Please,

[Sunnydays18]

I currently work part time 24 hrs a week and earn just above the minimum wage hourly rate , I also have a pension of 165 per month, my wage has a tax code of 1059T and my pension has the remaining amount of 2000 I think, which means I don't pay tax on my pension...but I do pay tax on my wages or around 100 or just over a month. 

My question is...would it be better to put my full tax of 12690T on my wages to hopefully pay less tax? And obviously pay a small amount on my pension? Or does it not work that way? Anybody who can advise please,  many thanks 

[newmodarmy]

It doesn't make any difference- it will all come out in the wash as my mum used to say

[bhg481]

Easier for them to tax you on one source so they add all your incomes together, take off your tax allowance, calculate the tax due and charge that on the largest source of your income. You DO pay tax on your pension but the tax is taken off one of your other sources of income.

[newmodarmy]

I think the issue here may be that the part time job doesn't pay enough to cover the full basic tax free allowance of £12570 so that's why HMRC chooses to split it in this way.

[Maydup]

I'm sure it's as broad as it's long. 
you earn c£14/£15k pa from part time job and another £2k from pension so sadly you will pay tax on anything over the personal allowance - matters not where it is taken from.

 

[Sunnydays18]

Thank you to all of you who have answered 

Many thanks

[ToraToraTora]

It wont make any difference. They are using your tax code in the job to collect the tax due from both sources. It's the simplest way. I'd leave as is.

[newmodarmy]

The conclusion is the same (i.e. it makes no difference how the tax free allowanace is split between income sources) but I got something wrong in my post at 11:45 as I used an old minimum wage figure. Using the latest MW figure it seems your income from work will be slightly above the standard tax threshold of £12570  so they could allocate all your allowance there, but you'd then pay tax on your pension.

Things could change again if you're due to get state pension soon.