Pension P45 for deceased Does anyone know?

BENTOR_2

I am in talks with CIS Insurance I have recieved an annuity payment from my late husband. I have recieved a P45 from CIS in my name but with his National Insurance on. I have spoken to numerous agents at HMRC who tell me the P45 should be in my late husbands name I have now heard again from CIS who say it should be in my name does anyone know the answer!

jem16

Can you clarify - is your husband recently deceased? Was he in receipt of the pension when he died?

The normal procedure would be for the pension company to send a P45 directly to HMRC with your husband's details on it. There is a section on the P45 where the pension provider should mark D for deceased in Box 14.

Was it this form you received?

http://www.hmrc.gov.uk/forms/p45.pdf

Here is the official notes from HMRC about what to do when a pensioner dies.

http://www.hmrc.gov.uk/paye/employees/changes/death.htm

BENTOR_2

My husband was 48 when he died in March and CIS have been a nightmare they have sent a P45 with my name and my husbands National Insurance I spoke to revenue and customs they say it should be in my late husbands name but CIS quote Revenue and Customs say it should be me.

jem16

BENTOR wrote: »

My husband was 48 when he died in March

So presumably not receiving his pension then. I would have thought that the P45 would have been from your husband's employer in that case. Or did he work for CIS insurance?

CIS have been a nightmare they have sent a P45 with my name and my husbands National Insurance I spoke to revenue and customs they say it should be in my late husbands name but CIS quote Revenue and Customs say it should be me.

I cannot understand why CIS would send you a P45. A P45 is a form that would be used when a pension is being stopped because a pensioner has died. This doesn't appear to be the case here.

Are you sure it's a P45?

Can you explain this a bit further. Your husband paid into a pension with CIS and to which you are now entitled - is that correct? Or did he work with CIS Insurance?

BENTOR_2

Yes I have it here it's a P45. i have one from his employer and 1 from CIS because tax is paid an annuity pension lump sum a P45 is produced. What the CIS are saying is because the payment was made to me I should have the P45. He did not work for the CIS.

jem16

BENTOR wrote: »

1 from CIS because tax is paid an annuity pension lump sum a P45 is produced.

I'm with you now - I think.

It was your use of annuity that was confusing. An annuity is an actual monthly pension.

Did you opt to take the whole pension pot as a lump sum? If so why was tax payable?

BENTOR_2

Yes I took it as a lump sum as it was only £2000.

jem16

BENTOR wrote: »

Yes I took it as a lump sum as it was only £2000.

Can't see why tax was due then. Are you sure tax was paid?

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnBenefitsPensionsAndMaintenance/DG_172127

BENTOR_2

Yes the Gross amount was £2092.92 then income tax deducted £293.80 so net amount was £1799.12.
It then says a P45 form details teh taxable element values applicable small pension cash lump sum you recieved.
I have spoken to revenue and customs and they tell me the P45 should be in my late husbands name CIS say they have spoken to Revenue and Customs and they say it should be in my name to be honest I am at my wits end with it all.

jem16

BENTOR wrote: »

Yes the Gross amount was £2092.92 then income tax deducted £293.80 so net amount was £1799.12.

To be honest I can't see why you are being taxed as a death benefit lump sum on an uncrystallised pension would normally be tax free.

As to the p45 I should imagine if it's you that's being taxed then it should be in your name with your NI details on it.

Pension lump sums would normally be paid outside of the deceased's estate so i can't really see why your husband's details would be on it.

To be honest I am not totally sure.