cashed in pensions

johnaka

sorry for a long drawn out question etc.
I cashed in both my small pensions. can they be taxed at source?
I'm self employed and have been for the last 3 years.
now I get a letter from the tax man ,giving me my code etc. surely with being self employed and filling my tax returns once a year .
I shouldn't have a tax code?
this all started when I cashed both my small pension and is taxed before it goes into my account.
the tax code they've given me below the allowance 7410(uk allowance £8105) to which they've taken off my small pension £695.
I thought you are allowed the full amount before you pay tax.
they don't even know what I've earned yet nor do I till April as this is a new job, previously I was a carer but since the person I cared for has died.I changed my job description and working from home.
by the way I've told the tax office about this.
OK the question is can they take the tax off at source even though I'm self employed? I've written a letter to the tax office so its just a waiting game.but rang the pension folks and all I got was to ask the tax office,I didn't have to do this on my other pension(legal & general).

xylophone

http://www.hmrc.gov.uk/pensioners/paying-se.htm
"You'll pay tax on any company or personal pension you receive through the PAYE system."

laurel7172

From what you say, your annual pension is £695-am I correct?

In that case, your coding notice is correct. What it's saying is that IF you work under PAYE then your tax free allowance available for that job would be 7410 for the year (£8105 less the £695 in pension you've already had tax free).

johnaka

I wasnt sure how things work.
I dont run a company as such or at least I'm not registered as a company.
I make grab rails/carriers for classic motorcycles. I don,t expect to earn any more than £10,000 beat being on the job seekers.at 61 I've got no chance of finding a job. tried for 3 years.so what little I get is better than nothing.I'm in a fortunate position every thing we have inc home is paid for and we still go away for hols. anyway thanks