Retired

Just_landed · 27 January 2013 at 1:07PM

I'm retired and in receipt of two Annuities. One I've been paid money each month for a couple of years so the tax man has given them my tax code (so they know much to pay before deductions) mind you its a pittance. The second one I've just received the first instalment but was Taxed @ 20%. The income from these two Annuities is well below the personal allowance threshold and with no other income I should not have to pay income TAX. So how will this work IE :- my TAX coding to both annuities ?

Thanks

cotswoldaccountant · 27 January 2013 at 1:24PM

You should contact HMRC to request that they split the personal allowance between the two tax codes (or, if one annuity pays more than another, in an appropriate proportion). At the moment it would appear that your full personal allowance is used in the tax code for the first annuity, and the basic rate tax code (BR - 20% tax) on the other. A quick phone call to HMRC should sort this out. The number is 0845 900 0444 and you will need your NI number as a reference. You might wish to wait until after 31st January as their phone lines will be absolutely inundated this close to the tax return deadline!

Just_landed · 27 January 2013 at 1:35PM

Thank you cotswaldaccountant.

Am I right in thinking that if I do not contact the TAX man the second annuity will continue being TAXED and I would have to fill an R40 at the end of the TAX year ?