Back Tax Demand

xylophone

I have a relative who became 65 on 11 April 2013 and he is certainly not receiving the £10500 tax allowance - are you sure that you are? He did receive a P161.

http://www.hmrc.gov.uk/incometax/personal-allow.htm

jem16

rollon65 wrote: »

My secondary pension was a guaranteed "bought out" GRE policy dating back to 1985 and was considered by my IFA to be too good a stand-alone deal to add to my pension acquisition pot. That's all I can tell you about that.
I have assumed 212P for that one too.

You can't use that tax code on another income. Your secondary pension ( if paid separately) should have a totally separate tax code. In your case it should be BR. You need to check this.

Re the claimed underpayment: HMRC actually say "This underpayment will be collected through your tax code during 2014" (rather than 2014 - 2015, as you suggest) - but as my private pensions have gone down, I can only come to the conclusion that what they actually meant was "2013 - 2014", rather than 2014 - 2015 . . . or is there indeed worse to come?

No they mean 2014/15. Your tax code doesn't appear to have changed since January 2013.

In this entire scenario, my wife and I have only played a RE-active part, rather than a PRO-active one - on the basis that we would be asked for required information, rather than we should anticipate what the two (DWP and HMRC) bodies would like to be informed of. I put it to you that this is the stance that the majority of "Joe Public" would take in our mutual ignorance or otherwise would adopt.

Kind regards - rollon65.

No you really must be pro-active especially in the case of multiple incomes. It will help you avoid underpayments.

jem16

xylophone wrote: »

I have a relative who became 65 on 11 April 2013 and he is certainly not receiving the £10500 tax allowance - are you sure that you are? He did receive a P161.

http://www.hmrc.gov.uk/incometax/personal-allow.htm

His tax codes seem to suggest he is.

However looking back at an earlier post he said that he retired on 28th May 2012. I think he may have his dates mixed up.

xylophone

212P is obviously attached to the primary pension. However what code is used for the secondary pension?

The OP shouldn't have a P code?

http://www.hmrc.gov.uk/incometax/codes-basics.htm

P
For people born between 6 April 1938 and 5 April 1948 and eligible for the full Personal Allowance

xylophone

he retired on 28th May 2012.

He might have retired from his job a year before becoming eligible for state pension?

My relative retired and drew an occupational pension when he was nearly 59.

jem16

xylophone wrote: »

He might have retired from his job a year before becoming eligible for state pension?

My relative retired and drew an occupational pension when he was nearly 59.

Yes it is possible, although as he was receiving the higher allowance for 2012/13 as well I would go with a mistake on his part.

We really need the OP to clarify. It seems very unlikely that HMRC have made a mistake with his date of birth but anything's possible.

xylophone

anything's possible.

With HMRC? (Even as with the Lord...):)

The relative above recently found himself recoded so that he would have been paying tax twice on a benefit received through his occupational pension - key rapid communication with those concerned.....

jem16

xylophone wrote: »

With HMRC? (Even as with the Lord...):)

Unfortunately so. Main reason why everyone should take an active interest in their tax affairs.

rollon65

Sincere apologies Jem16 - DOB should have read 28 May 2012.

jem16

rollon65 wrote: »

Sincere apologies Jem16 - DOB should have read 28 May 2012.

Let's hope you mean date of retirement as opposed to date of birth.

Have you managed to check the tax code being used against your secondary pension?