My Pensions Are Being Taxed - Advice Needed

GlynD

My military and private pensions are both being taxed at 20% at the moment but I believe I'm well under the threshold for taxation. Are there any tax experts out there who could offer advice?

CLAPTON

are the two pensions your sole income?
no earned income or state pension?
no JSA or benefits?
how much are they?
when did they start?


normally for two incomes one would be taxed using a 810L code and the other a BR code
however if the larger pension was less than 8105 per annum then the taxcode could be split between the two pensions.

GlynD

*personal income details deleted*

getmore4less

You should have got tax information on the pensions from them.
( I went through all this for my day a couple of years a go)
probably Xafiniti for the army pension(it is them for RAF)

AIUI the war pension is not taxable


If you get the state pension that uses up some of the personal allowance as that is not taxed at source.

GlynD

getmore4less wrote: »

You should have got tax information on the pensions from them.
( I went through all this for my day a couple of years a go)
probably Xafiniti for the army pension(it is them for RAF)

AIUI the war pension is not taxable


If you get the state pension that uses up some of the personal allowance as that is not taxed at source.

You're quite correct. It is the Xaffinity Paymaster and they have notifed me of tax code BR which is 20%. My other pension is also taxed at 20%. As my war pension isn't taxable though it is my thinking that I'm not using up my personal allowance so why are they taxing me at full rate?

getmore4less

GlynD wrote: »

You're quite correct. It is the Xaffinity Paymaster and they have notifed me of tax code BR which is 20%. My other pension is also taxed at 20%. As my war pension isn't taxable though it is my thinking that I'm not using up my personal allowance so why are they taxing me at full rate?

I would give the tax office a call, they need to issue tax codes to the pension providers.

GlynD

getmore4less wrote: »

I would give the tax office a call, they need to issue tax codes to the pension providers.

I had that in mind but it also occurred to me that someone on here might be able to give me an insight into what I should be paying before I get frustrated with some teenager on the other end of a phone line.

somethingcorporate

Nothing, it would seem.

HMRC tend not to be staffed by teenagers - I have always found them to be very helpful.

Try and approach them with an open mind, it will help you in the long run.

xylophone

http://www.hmrc.gov.uk/incometax/taxable-income.htm
http://www.hmrc.gov.uk/manuals/eimanual/EIM74302.htm
http://www.hmrc.gov.uk/rates/it.htm
might be worth a look - do ring HMRC about your tax codes.

SueMaggie

If you're over 60 and you meet the qualifying salary criteria I can recommend this free service http://www.taxvol.org.uk/.

They sorted out a family member's very complicated tax problem really quickly, spoke to HMRC on her behalf and kept her informed.

GlynD

This query has now been sorted. Turns out I was right. I shoudn't have been paying tax on my private or military pensions because I'm well under my personal allowance.