Tax rebate SUCCESSES

jem16

JWhite wrote: »

I am shocked that they have been adding these contributions still to his allowances for the past 11 yrs.

Why didn't you notify HMRC when he stopped contributing?

Doesn't the pension company notify them when he stops his contributions and starts receiving the annuity ?

The claim for higher rate tax relief lies with the person making the contributions and is nothing to do with the pension provider.

Also how can they put the contributions and the annuity that is being paid for the same pension on the same tax coding when it is obvious if he is receiving the annuity why would he still be contributing to it. :eek:

It could be two separate pensions. I currently pay into a pension and also receive a pension.

I am afraid that he will owe tax.

Leodogger

jem16 wrote: »

Why didn't you notify HMRC when he stopped contributing?



The claim for higher rate tax relief lies with the person making the contributions and is nothing to do with the pension provider.



It could be two separate pensions. I currently pay into a pension and also receive a pension.

I am afraid that he will owe tax.

He doesn't claim higher rate tax relief.

I wonder what happens then to people who are illiterate because I am sure my husband isn't the only one that can never make head nor tail of a tax code notice. The only reason this one got picked up was that we wanted to see how his state pension etc. affected his tax code. He has never looked at a single one since he has been at work !

The only tax returns he ever received and he only had about half a dozen in his lifetime, I had to complete for him but he hasn't had one for at least 12 yrs.

jem16

JWhite wrote: »

He doesn't claim higher rate tax relief.

Then what was the allowance for £600pa for? Usually an allowance for pension contributions are only for those who need to claim the higher rate tax relief as the pension provider only applies basic rate tax relief.

I wonder what happens then to people who are illiterate because I am sure my husband isn't the only one that can never make head nor tail of a tax code notice.

I'm afraid pleading ignorance doesn't help. Like everything else if you don't understand then employ someone who does.

Leodogger

Yo be perfectly honest we have never "claimed" anything. When he originally took out his private pension he completed forms for the insurance company and as far as we were aware it was down to the insurance company to notify the Inland Revenue what he was paying as they always seemed to manage to adjust his tax code at work when his contributions increased, therefore I was under the impression the onus was on the insurance company to declare his contributions to them and when they ceased. When I completed his tax returns I always "declared" his yearly contributions to the pension scheme along with all the rest of his financial affairs but as I say he hasn't received a tax return in many years.

I didn't notify them when he stopped making them for the same reason, that I believed the onus was on the insurance company to inform them that all contributions had stopped and he was now receiving an annuity. I know for a fact that he had to sign "papers" for the pension companies with our financial advisor when he chose and commenced his annuity. Again I presumed these included a declaration to notify the tax office that he had ceased making contributions.

He could not phone them himself as he is profoundly deaf and leaves all correspondence and financial affairs to me to deal with as he has never written a letter in his life and wouldn't know where to start.

In all the years I have been dealing with the tax office, I have never found them to be competent (they completely fouled up my tax codes last year for two tiny pensions and a 2 day a week employment, placing the majority of my personal allowance to the tiniest pension, I rectified this and this year again my new tax code shows exactly the same mistake, not making my employment "my main employment" for purposes of paying tax.

You have to spend hours "touring" their their web site to find anything out and I don't know anyone that can understand their own tax coding unless everyone I have ever met and asked about the subject is a complete idiot :rotfl:

Leodogger

We have never notified the Tax Office when he stopped making contributions to his pension scheme as we presumed that it was the Prudential's job to do that as every time we increased his contributions to his pension scheme, his tax was adjusted at work without us doing anything.

Also my husband is profoundly dead and has never written a letter in his life.

I thought that the P160's produced by Pension Companies automatically notified the Inland Revenue of contributions made, or not as the case may be :cool: In fact I received one from my own private pension company, and the accompaning letter stated that Part 1A of the P160 had been sent to the tax office responsible for my pension in order for them to deduct the correct tax.

jem16

JWhite wrote: »

When I completed his tax returns I always "declared" his yearly contributions to the pension scheme along with all the rest of his financial affairs but as I say he hasn't received a tax return in many years.

This will be where the claim for higher rate tax relief came from.

In all the years I have been dealing with the tax office, I have never found them to be competent (they completely fouled up my tax codes last year for two tiny pensions and a 2 day a week employment, placing the majority of my personal allowance to the tiniest pension, I rectified this and this year again my new tax code shows exactly the same mistake, not making my employment "my main employment" for purposes of paying tax.

As you seem to know enough to realise your own tax affairs are wrong, I'm surprised that you didn't notice your husband's tax code was too high.

Leodogger

JWhite wrote: »

We have never notified the Tax Office when he stopped making contributions to his pension scheme as we presumed that it was the Prudential's job to do that as every time we increased his contributions to his pension scheme, his tax was adjusted at work without us doing anything.

Also my husband is profoundly dead and has never written a letter in his life.

I thought that the P160's produced by Pension Companies automatically notified the Inland Revenue of contributions made, or not as the case may be :cool: In fact I received one from my own private pension company, and the accompaning letter stated that Part 1A of the P160 had been sent to the tax office responsible for my pension in order for them to deduct the correct tax.

Sorry for the duplication in the last two posts, the first one disappeared and I thought it hadn't "got through".

jem16

JWhite wrote: »

I thought that the P160's produced by Pension Companies automatically notified the Inland Revenue of contributions made, or not as the case may be :cool: In fact I received one from my own private pension company, and the accompaning letter stated that Part 1A of the P160 had been sent to the tax office responsible for my pension in order for them to deduct the correct tax.

That's only to inform HMRC of the commencement of a pension, nothing at all to do with contributions.

Leodogger

jem16 wrote: »

This will be where the claim for higher rate tax relief came from.



As you seem to know enough to realise your own tax affairs are wrong, I'm surprised that you didn't notice your husband's tax code was too high.

To be honest, as I never knew what it was supposed to be, I wouldn't have known it was wrong.

I have only ever queried mine in the last 12 months and that is because I have got 3 codes and couldn't for the life of me figure out what they were doing wrong except that I was paying out £30 per week tax on an income of £150 per week which I was sure was wrong as my total personal allowance was £8105 and then noticed that one of the codes for a small pension of £108 pa pension had £1999 allowances set against it Otherwise I would have probably carried on paying it.

I reckon there are probably millions of people who haven't a clue what they should be paying and are probably paying too much, especially when they have more than one tax code. There were never any problems years ago but then again people had permanent full time jobs, now everyone is temporary, part time and have two or three jobs so it would be no suprise to me to find anyone paying the right tax.

Leodogger

jem16 wrote: »

That's only to inform HMRC of the commencement of a pension, nothing at all to do with contributions.

Well I blame the tax office for not ensuring they are notified by the pension companies when your contributions change and if we do owe tax, they will have to wait a hell of a long time as I am just about to finish work and we will both be living on a state pension and mine is only 60% of a full state pension In fact I was about to enquire if we could get any state benefits towards our community charges as we live in a housing association property and have to pay £26 per week for that. :rotfl: