Just a quickie!

Brookebaloo

Hello,

I'm trying to figure out my poor mothers pension and need a little help?

Basically she was made redundant in December last year, she in 60 but cannot claim state pension until September this year. She has had lots of jargon through the post from HMRC requesting P60 and P45, which we presumed her pension provider had sent on? after being made redundant she opted to receive her lump sum (7k) and a monthly income pension of £103.

£103 is the only source of income she has, and now HMRC have said her tax code for the year is BR and this will help her pension admin to tax her 20%. I may be being incredibly naive but I presumed from only receiving £1,236 per year from this pension - then surely this is well below the personal allowance and wont be eligible for Tax??? Can anyone please help us, she is panicking she wont be able to live of this monthly pittance.

Many Thanks in advance xx

CLAPTON

she needs to phone HMRC and explain she has only one source of income i.e. her company pension

xylophone

She should have been given a P45 when she left employment and should be receiving her 2011-2012 P60 any time now.
I think that she needs to contact her tax office (details should be available from her pension provider) - she should also explain that she expects to draw her State pension in September. Has she requested a pension forecast? http://www.direct.gov.uk/en/pensionsandretirementplanning/statepension/statepensionforecast/dg_10014008

http://www.hmrc.gov.uk/rates/it.htm
http://www.hmrc.gov.uk/pensioners/index.htm
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm - substitute correct tax rates in examples which are out of date.

CLAPTON

are you sure she paid the correct tax in 2011-12?

soperman

Your Mother needs to phone her local tax office to explain and they may grant a nil tax code straight away or may send your Mother a form to complete - any overpaid tax will be refunded.

You can act on behalf of your Mother but HMRC may request her to complete the HMRC form 64-8 - authorising as agent form. Just serach for HMRC form 64-8 and download.

McKneff

xylophone wrote: »

She should have been given a P45 when she left employment and should be receiving her 2011-2012 P60 any time now.
I think that she needs to contact her tax office (details should be available from her pension provider) - she should also explain that she expects to draw her State pension in September. Has she requested a pension forecast? http://www.direct.gov.uk/en/pensionsandretirementplanning/statepension/statepensionforecast/dg_10014008

http://www.hmrc.gov.uk/rates/it.htm
http://www.hmrc.gov.uk/pensioners/index.htm
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm - substitute correct tax rates in examples which are out of date.

As she was made redundant and no longer works for the company she will not receive a p60. These are only supplied to employed people. She should however, recive a P60 from her pension provider who would also have forwarded a copy of this to the HMRC
The Employer would have sent on a copy of her P45 to the HMRC when she left.

If she is still of working age and job seeking she could be claiming JSA

I was told last week that HMRC are now doing refunds automatically in these circumstances (I am in the same situation as your mother) they said a cheque would be issued in the next 4 or 5 weeks, I have had no forms to fill in.

xylophone

.

These are only supplied to employed people

.

Not so, as you go on to point out yourself!
I did not say that the P60 would be coming from the employer...
As an error may have occurred, I would certainly not wait for any automatic refunds but would contact HMRC.
I am not sure that the OP's mother is in the same situation as you because (as I understand it), you have already retired and are receiving your state pension?

McKneff

xylophone wrote: »

. .

Not so, as you go on to point out yourself!
I did not say that the P60 would be coming from the employer...
As an error may have occurred, I would certainly not wait for any automatic refunds but would contact HMRC.
I am not sure that the OP's mother is in the same situation as you because (as I understand it), you have already retired and are receiving your state pension?

This is what you said. You either implied that it would be coming from the employment or you left out the fact that the P60 would be coming from her Private Pension Company

Quote = She should have been given a P45 when she left employment and should be receiving her 2011-2012 P60 any time now.= Quote



I have retired but this was during the course of last year, I retired in Sept., received state pension, received p/pension, paid too much tax in 2011/2012 so am now waiting for a refund. Is that not the same thing then.


I did contact HMRC a little while ago, after the tax year ended, that is when they told me that they had my P45 from my employer, as soon as they received my P60 from the PPC they would be sending a cheque as a refund.
And that I didnt need to do anything else because they now do the refunds automatically. In the past I believe that you have had to actually claim by filling in forms, sending p45 copies, P60 copies,

xylophone

I would disagree that there was any such implication - there were two statements - she should have received her P45 on leaving and she should be receiving her P60 any time now. (The OP had mentioned that she was drawing a pension.)

The OP's mother has been given tax code BR - this may or may not be correct and needs investigating. As she will be eligible to receive her state pension in a few months' time this should also be covered with HMRC - a P161 might be required.

She might also need to check out tax on savings income.

McKneff

ah well, we will jst have to agree to disagree, it was my understanding as to what was written down.

My PPension was a BR tax code.

My tax this year will be nil:j:j

Brookebaloo

Hello

Thanks everyone for your comments. I did call the HMRC yesterday and they advised they had P-60 details on their screen but couldn't tell me if this was current year as all they see is a set of details and not the actual year????!!! They said from looking there would be no tax rebate as her £100 per month contributes to in year in-come?? I did argue she has gone from wages of £700 per month to £100 so surely that makes a difference but got no where! They have sent her a P-161 enquiry form, which advises to send details of P45. (so confusing, not sure how pensioners get anywhere!)
She has part 1a of her P45 (employee copy) but it advises to keep safe and not send anywhere as no replacements can be provided. I'm going to send them a copy along with a letter advising of her circumstances but perhaps wait until end of May time to receive her P60 detail from Personal pension.
She gets her state pension oin September but its only £18 per week as she was on the old stamp B marrieds women allowance, back in the day and didn't realize before it was to late to do something about it, so not sure if this makes her ineligible for JSA or any other benefits.

Thanks again everyone for taking the time to reply xx