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

Nine_Lives

I'm just guessing as she usually has a phobia about phones. I'll put it to her & she what she says.
Fun should be tomorrow when I get on a pc & not my iPhone & i look for the appropriate number/office. I remember last time I was advised on MSE to get in touch with the tax orrifice - they wanted to know what on earth I was doing getting in touch with them. Lol.

jem16

K_P83 wrote: »

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.

It really doesn't matter too much about what she earns in her job. She knows her pension amount is £2297pa so tell HMRC that. They should then allocate a code of 230 to the pension and 517 to the job. Together they add to 747.

Keep it under review each year she has the pension and it will be near enough correct.

The main thing is to avoid 747L on her job and BR on the pension as she will overpay tax.

K_P83 wrote: »

I'm just guessing as she usually has a phobia about phones. I'll put it to her & she what she says.

Put it to her that she will pay around £460 in tax that she probably won't need to be paying and then she will have to apply for a rebate which will take even longer and have more work for her to do to get it.

Fun should be tomorrow when I get on a pc & not my iPhone & i look for the appropriate number/office. I remember last time I was advised on MSE to get in touch with the tax orrifice - they wanted to know what on earth I was doing getting in touch with them. Lol.

It may be a bit soon phoning today if the pension provider hasn't yet notified HMRC. If you wait until she has had her first payment and payslip then you should have any tax reference details that HMRC may ask for.

Nine_Lives

jem16 wrote: »

It may be a bit soon phoning today if the pension provider hasn't yet notified HMRC. If you wait until she has had her first payment and payslip then you should have any tax reference details that HMRC may ask for.

Cheers Jem.

To answer the earlier questions on how much she's earning...

taxable amount May end: £109.69
taxable amount June end: £121.32

As i said, school holidays, as and when, very small amounts.

Mikeyorks

It was the gross to date that would have been more useful?

But - I essentially covered all you need to do all the way back at post #15? Including the 'gross to date'.

Once she has a Code for the pension - you then ring HMRC. If she's uncertain on the 'phone then get her to do the easy Security bit - then she simply asks they talk to you? Then, as long as you keep it as simple as the fact the Codes need to be split .... the job is done.

Savvy_Sue

K_P83 wrote: »

I'm just guessing as she usually has a phobia about phones. I'll put it to her & she what she says.

I wouldn't say they had a phobia, but DS1 and DS2 were both very 'reluctant' to use the phone at that age. We did it in easy stages: practice beforehand, work out what you're going to ask them, work out what they'll want to know from you etc.

Mikeyorks wrote: »

Once she has a Code for the pension - you then ring HMRC. If she's uncertain on the 'phone then get her to do the easy Security bit - then she simply asks they talk to you?

And that's another way to start: but you keep her at your side "in case they want to ask you anything" but also so that she hears it's not that hard ...

Nine_Lives

Mikeyorks wrote: »

It was the gross to date that would have been more useful?

And with June turning out to be the last time she worked, that would be the gross to date that i gave.

I included May just to show the slow progression, that was all.

And i gave the information after "the answers" because it seemed to be something of a sticking point, even though i said she was earning so little. I just wanted to answer folks questions, that's all.

borkid

K_P83 wrote: »

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.

I'm in a similar situation in that I know my pension but the rest is variable. Why doesn't she ask the tax office to allow 229 code for the pension ( if I understood correctly this will mean all the pension money will be free) and the remaining allowance (717- 229 ) 514 as her ' work' tax code. If she earns so little she'll not reach this and again will not pay tax. Sorry if I've not used the correct terminology but hope you understand what I'm proposing.

Sorry just spotted this has already been said

Nine_Lives

borkid wrote: »

I'm in a similar situation in that I know my pension but the rest is variable. Why doesn't she ask the tax office to allow 229 code for the pension ( if I understood correctly this will mean all the pension money will be free) and the remaining allowance (717- 229 ) 514 as her ' work' tax code. If she earns so little she'll not reach this and again will not pay tax. Sorry if I've not used the correct terminology but hope you understand what I'm proposing.

Sorry just spotted this has already been said

Aye i get it. Well, because of this thread i get it.

Going to follow Jems advice - wait on the first payment & then call. I'll also tell her what jem said on her 2nd quote there. That might wake my sister up a bit.

xylophone

Did you see No 21 above?

Nine_Lives

I did. I thought i'd hit the thanks button last night. Seemingly not. I'll sort that now....


EDIT: It seems that time is now then as she's just had her first payment. Capita Hartshead seem to time their letters well - the last time they issued payment it came on the same day as the letter was received.

I'm guessing the tax boys & girls don't work weekends like normal people do

EDIT x2: Amazingly it seems they do. Shame there's no freephone on 0845 300 0627 though.