Tax office claim i owe them
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If I end up owing them that, would I be better off paying it from that pension layout given its sitting in a cash isa at the moment, or leaving as is to come out of salary. Or just wait til my April salary goes in ( on 28th)?
Sorry for so many questions and thank you.
HMRC phone agents didn't seem to know what's what. They kept putting me on hold for ages whilst they asked someone else, but still didn't have any answers
It is more than possible that the taxable part of your pension payment brought you into higher rate tax. What will your earnings from your employment be in this tax year and what tax was paid on the £18422 - I am guessing £3684.40.0 -
[quote=[Deleted User];73996742]It is more than possible that the taxable part of your pension payment brought you into higher rate tax. What will your earnings from your employment be in this tax year and what tax was paid on the £18422 - I am guessing £3684.40.[/QUOTE]
£3493 after 1 month of £11500/year tax allowance deducted. If the OP had a salary of about £35K, the unpaid tax on the pension payment would be around £1876 - near enough to match the actual numbers. As the Tax Allowance increases to £11850 for 2018/2019 the proposed reduced tax code is correct.0 -
In a previous post the op states,
Ok got the letter from Capita. Amount payable tax free ££6140.79. Amount subject to tax £18422.38.
It says that after 5 apr 2018 hmrc Will Check If Ive Paid The Right Amount Of Tax Or Not. It Says That The Tax deducted Will Be Emergency Code Week One -503L.
So if the code 503L (which seems a bit odd in itself) was used with payment being treated as a monthly payment the tax deducted would be £6,917.56 which, even though it has allowed some Personal Allowance which isn't really available,should be more than sufficient to cover any tax which is going to be due for the year. Even if 100% into the 40% band the tax due would only be £7,368 so a small amount owing but significantly less than £1,867 and the lower the income at the ongoing employment the lower the tax due on the pension will be.
Hopefully op will be able to confirm the tax deducted from the pension and recent payslip details later today and all will become clearer.0 -
Dazed_and_confused wrote: »In a previous post the op states,
Ok got the letter from Capita. Amount payable tax free ££6140.79. Amount subject to tax £18422.38.
It says that after 5 apr 2018 hmrc Will Check If Ive Paid The Right Amount Of Tax Or Not. It Says That The Tax deducted Will Be Emergency Code Week One -503L.
So if the code 503L (which seems a bit odd in itself) was used with payment being treated as a monthly payment the tax deducted would be £6,917.56 which, even though it has allowed some Personal Allowance which isn't really available,should be more than sufficient to cover any tax which is going to be due for the year. Even if 100% into the 40% band the tax due would only be £7,368 so a small amount owing but significantly less than £1,867 and the lower the income at the ongoing employment the lower the tax due on the pension will be.
Hopefully op will be able to confirm the tax deducted from the pension and recent payslip details later today and all will become clearer.
Hello,
Ok, so my latest payslip is Feb 28th. it says
Tax code 1150L period tax year
£2284.16 27994.35
tax paid (in Feb) £265.00 Balance YTD £3488.80
I don't know how to find out how much tax I actually ended up paying on the pension lump sum?Mortgage free as of 10/02/2015. Every brick and blade of grass belongs to meeeee. :j0 -
Did you receive a P45 from the pension company?
If not can you check what was received in your bank account, not perfect but it could be the non taxable element plus taxable element (which we know) less tax (unknown) = amount in bank so we could then have a stab at the tax figure.
You are going to end up having some 40% tax to pay though as your salary plus taxable pension is going to be approaching £50k.0 -
Hello,
Ok, so my latest payslip is Feb 28th. it says
Tax code 1150L period tax year
£2284.16 27994.35
tax paid (in Feb) £265.00 Balance YTD £3488.80
I don't know how to find out how much tax I actually ended up paying on the pension lump sum?
What was the net payment from the pension? The tax deducted will be £25463.17 less the amount lodged into your bank.
(Sorry Dazed - your post was not on my screen when I replied)0 -
Dazed_and_confused wrote: »Did you receive a P45 from the pension company?
If not can you check what was received in your bank account, not perfect but it could be the non taxable element plus taxable element (which we know) less tax (unknown) = amount in bank so we could then have a stab at the tax figure.
You are going to end up having some 40% tax to pay though as your salary plus taxable pension is going to be approaching £50k.
thanks Dazed and Confused, reading the letter again from Capita, it says they will send me a payslip confirming the gross payment, tax deducted and net payment in respect of the taxable element. they will also issue me a P45. None of which I've received.
so I've called them and asked for a copy to be sent. So i'll have that in a week's time apparently.
So in your view, you think the amount owing could be less that they've estimated?Mortgage free as of 10/02/2015. Every brick and blade of grass belongs to meeeee. :j0
![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
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