chance of tax rebate?

zaksmum

My husband has just retired on medical grounds, finishing end of September.

He's been paying tax on earnings of about 35K per year but obviously won't earn that this tax year due to retiring less than halfway through it.

From now his only income will be his private pension.

If his tax code takes into account his potential earnings for 09/10, can he apply for a tax rebate?

If so, how does he go about doing that?

Money_Grabber13579

I'm not totally sure about how pensions are taxed, but I think there are various ways in which it can be down. (Still learning all this tax stuff at uni!)

Will your husband's pension be taxed as part of the PAYE scheme? If so, you don't need to do anything, as any tax you've overpaid in the past months of the tax year will be compensated for by paying less tax in the latter months of the tax year.

So he will have paid tax on 35k at the start of the tax year, but only needs to pay tax on, say, 20k at the end of the tax year. But you won't continue paying tax on the 35k after you've stopped earning it.

I'm going to stop now, cause I sense that I'm rambling a bit!

CLAPTON

The tax taken depends upon his tax code

If the HMRC have transferred his tax code and his earnings and tax to date to his pension then his tax will automatically correct itself

if not then it won't.

so check the pension 'payslip' and see what the tax code is and whether the pay to date and tax to date include his pre-retirement earnings