Taxed pension payments to my non-tax paying sister. What happens now?

jem16

K_P83 wrote: »

She's paid via BACS afaik. She has payslips somewhere, i'll see if she'll dig them out.

I just followed that link Jem & stopped at this point:

"If you are an employer use form P46(Pen) to notify HMRC you are paying someone a pension"

My sisters employer aren't paying her a pension & likely aren't paying anyone they employ a pension either. It's a pension my dad had through his work that is paying my sister

They are the pension provider of your father's employer and your sister is receiving a dependant's pension.

http://www.hmrc.gov.uk/paye/payroll/pensions.htm#7

JUST because she's in full time education (my brother 1 year younger than her at 19 gets nothing & myself at 28 get nothing - not that we expected anything).

It's a dependant's pension. As your brother and you are both working you were not dependant on your father. Your sister is entitled as a dependant.

jem16

K_P83 wrote: »

She's paid via BACS afaik. She has payslips somewhere, i'll see if she'll dig them out.

Her tax code will be attached to this job then so BR is the correct code for her pension as it's a second income.

However it may be better to split her allowances between the job and the pension to save having to apply for a refund each year if she earns very little in the job. Once she has got the first payment from the pension company and their tax reference, it would be a good idea to contact HMRC and sort out the best way to deal with this.

Nine_Lives

Jem & Mike - I've just had a look at her most recent payslip & P60. Well, i say most recent payslip, it was from June. She's had some since, but can't find them tonight.
Her P60 tax code entry said "647L M1".
She has 2 payslips from May 2011 & June 2011 which both state 747L.

As for how much she earns, i couldn't really say tbh. She works during the school holidays, but not every day. If they get 2 weeks at easter, she may do say 3 days over the entire 2 weeks. It's extremely rare they'll have her in for a full week. Her rate of pay is £6/hr flat. She does about 8 hours when she's called in. I'll ask her to dig out her most recent payslip if it's really important, but she honestly doesn't earn much as she only does the odd day here & there.

Does the above info help you guys any?


borkid - it's not a teachers pension.

Mikeyorks

The payslips should show gross pay to date? Although it's probably a bit academic if the earnings are sharply focused around school holidays. As just multiplying by the number of months doesn't work.

So probably best to simply say that if her earnings are under the £5k pa mark then her personal allowance can be split as 230 (ie £2300) towards the pension and 517 (£5170) towards the job. That will avoid tax on either.

That would need a call to HMRC once they've issued a code to Capita. I can't see a sensible short cut on that.

CLAPTON

she needs to phone HMRC

say what she expects to get approximately from the pension and her earning and ask them to divide her taxcode between them so she pays no tax

Nine_Lives

I could get you a figure if you wish, but she really doesn't earn much at all. I didn't take note of the gross to date as i know it's going to be so small. I think her biggest pay (in a month) has been about £160, but that is rare. It's often below £100 IIRC (in a month).

The phone call to HMRC should be fun & games because she doesn't understand the whole area, but i'll pass on what you've advised & then it's with her then.

I'm assuming that this is going to have to be done by her & that Capita Hartshead will sort nothing out themselves?

CLAPTON

K_P83 wrote: »

I could get you a figure if you wish, but she really doesn't earn much at all. I didn't take note of the gross to date as i know it's going to be so small. I think her biggest pay (in a month) has been about £160, but that is rare. It's often below £100 IIRC (in a month).

The phone call to HMRC should be fun & games because she doesn't understand the whole area, but i'll pass on what you've advised & then it's with her then.

I'm assuming that this is going to have to be done by her & that Capita Hartshead will sort nothing out themselves?

capita have NO idea what she earns elsewhere so have no way of 'sorting' out the situation


she simply needs to have an idea what she will earns from her job and what her pension is, and then phone HMRC .. it's really that simple

Nine_Lives

CLAPTON wrote: »

capita have NO idea what she earns elsewhere so have no way of 'sorting' out the situation


she simply needs to have an idea what she will earns from her job and what her pension is, and then phone HMRC .. it's really that simple

How can she possibly provide such information though?

The pension one is easy - the letter tells her what she's entitled to per annum, so that's easy - it's down in black & white.

As for her job though, it's all up in the air isn't it. Let's say next week is a school holiday - she could be called in 5 days, she could be told she's not needed. It could go either way & she wont know until the day before really. She gets very little notice, but as it pays, she takes it when she can.

So what does she do then in this case? Pick a random monthly payslip & multiply it by 12? Genuine question, i'm not being smart.

CLAPTON

good god

if she doesn't know then who in heaven knows

it's an estimate; a guess

HINT : make it up; if it's wrong then at year end it can be sorted; there are no bad consequences

xylophone

EMA is not taxable -http://www.litrg.org.uk/low-income-workers/state-benefits/index.htm#ema


If she doesn't want to telephone the tax office then why doesn't she write explaining her circumstances and ask for advice?
H M Revenue & Customs
Pay As You Earn
PO Box 1970
Liverpool
L75 1WX

She can give details of her casual employment and provide a copy of the letter form Capita?