Capita - retained 30% of my monthly pension

margf

I have received a letter this morning from Capita who managed my Company Pension, they have advised me they have retained 30% of my monthly pension. They stated ''I have retained the 30% to cover any tax that may be due''.
No tax is due! Can they legally do this?
Can anyone advise please?
I am going to call them in the morning but would like to know my legal position first.

Thanks

xylophone

Have you been in receipt of your company pension for some time?

Have you had any reason to suppose that an incorrect tax code has been used?

margf

xylophone wrote: »

Have you been in receipt of your company pension for some time?
No this is my 1st payment
Have you had any reason to suppose that an incorrect tax code has been used?

It would appear they haven't used a tax code, they are paying me 70% of what is due as they have not got my tax code! it would appear from their letter.

xylophone

Then you have the answer? The position will be corrected when HMRC have provided Capita with a tax code?

Are you in receipt of state pension/other income of any kind?

dunstonh

No tax is due! Can they legally do this?

have HMRC told them the tax code to use yet?

If not ,then they should put it through on BR. Once HMRC tell them the correct tax code to use, they will correct it.

margf

Thanks

I am not in receipt of any other pension/income.

My thoughts were that my tax liability (not that there is one) was my responsibility and concerned that they had just taken it upon themselves to deduct 30%

Thrugelmir

margf wrote: »

No tax is due! Can they legally do this?

They are legally obliged to deduct basic rate tax as a minimum.