MSE News: Pensioners hit by further HMRC tax code errors

Newly_retired

HMRC appear to be grossly understaffed which could account for the many errors.

dampsquib

John_Pierpoint wrote: »

It is just complexity and bureaucracy, what is really needed is simplification of the system, less government and less tax.

The only chancellor who made some progress was Nigel Lawson; though there just might be something being done about it:
http://www.hm-treasury.gov.uk/ots_press_pt_060312.htm
Don't hold your breath, or you will definitely be dead before we have a better tax system.;)

Talk about being careful about what you wish for!
I was grateful for your post the other day, as I hadn't seen the Simplification report. From the tone of the report I was expecting AA to go, just not as quick as this budget. Everyone on TV & in the press, expressing surprise at the introduction of the "granny tax" obviously didn't read your post the other day, like I did.

John_Pierpoint

MSE is first with the news:T

http://forums.moneysavingexpert.com/showthread.php?p=52007895&highlight=sicily#post52007895

Surprise Surprise, we are getting "simplification" and more tax.

Mikeyorks

Yes I read it as well. All 94 arduous pages of it. I've read these 'budget starters' before - and often they're a mask to hide the real meat of the Budget.

So I equally found it mildly surprising the Chancellor opted for the jugular option in this one and disposed of the age related allowances at a (delayed) stroke. If nothing else it will get rid of a hell of a lot of admin within HMRC (and a bit in DWP) - and either get rid of or simplify the much misunderstood P161.

murphydavid

Pennywise wrote: »

Yes, occupational pensions are taxed via PAYE so they will show as PAYE income. State pensions aren't shown as PAYE income as they are never taxed at source.

This is because HMRC put your tax free allowance against your state pension first. Also some of your occupational pensions may appear "tax free" as well because if you have a number of small sum occupational pensions HMRC will issue a different code to each, starting with the ones that fall within your tax free allowance (meaning no tax to pay on the smaller ones if they fall completely within your remaining allowance). As each one is considered your tax free allowance is used up. Once used up the next one has the remaining tax free allowance and the remainder are fully taxed.
Least that's how mine are done so far.