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some advice on pensions being taxed please
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dazzer68
Posts: 1,159 Forumite
if any one could help i would appreciate it.
in july i had a tax demand from the tax office saying i owe tax on a pension i have, from 2005 , about £2000!!
im self employed and give all my stuff to my accountant to deal with (who should have spotted this error) and also on the pensions letter from my pension company its says tax will be paid by them. i feel i have been unfairly treated , as i dont feel its my fault, for 1 the accountant should have picked it up, thats what i pay him for, and 2 it states on my pension, tax will be paid at source.£2000 is a lot to find in the currant climate as my business has gone quiet, if its my fault i hold my hands up and will have to pay it, but if i can fight it with a chance of getting it reduced some how i will.
any advice gratefully recieved thanks
in july i had a tax demand from the tax office saying i owe tax on a pension i have, from 2005 , about £2000!!
im self employed and give all my stuff to my accountant to deal with (who should have spotted this error) and also on the pensions letter from my pension company its says tax will be paid by them. i feel i have been unfairly treated , as i dont feel its my fault, for 1 the accountant should have picked it up, thats what i pay him for, and 2 it states on my pension, tax will be paid at source.£2000 is a lot to find in the currant climate as my business has gone quiet, if its my fault i hold my hands up and will have to pay it, but if i can fight it with a chance of getting it reduced some how i will.
any advice gratefully recieved thanks
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Comments
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Most pensions are taxed at BR unless they are told otherwise. Have they been sending you P60's each year ?0
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i feel i have been unfairly treated , as i dont feel its my fault, for 1 the accountant should have picked it up, thats what i pay him for, and 2 it states on my pension, tax will be paid at source.
The accountant should pick it up if they are told about it. However, it if was taxed at source then the accountant hasnt got a lot to do unless it takes you into higher rate tax OR, it has your personal allowance attached to it.
Does the pension have your personal allowance attached to it or does your accountant use that for your self employment? (i.e. what is the tax code on the pension)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
what are the P60 details about the pension?
are you a 40% tax payer ? (i.e. combining your SE and pension income)0 -
i am away for a few days not at home so i cant get to my p60's to have a look, will do as soon as i can and let you know.thanks so far0
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