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Underpayment bill

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Comments

  • xylophone
    xylophone Posts: 45,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    He has a state pension I don't know if he pays tax on it.

    The state pension is paid gross but if the state pension plus his occupational pensions is more than his personal allowance, HMRC issue the appropriate codes to the pension providers so that the correct amount of tax can be paid.

    If he was paying 20% tax on the pensions then he should also have paid tax (at at least 20%) on the whole of the income from the casual employment?

    http://www.hmrc.gov.uk/pensioners/pension-company.htm
  • Archergirl
    Archergirl Posts: 1,868 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Yes he probably should have, but we foolishly assumed that he was being taxed correctly.
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