HMRC letter

Murphybear

I received an HMRC letter this morning which I don't understand. I will phone them up but at this time of year it could take all day.

Do they work at weekends?

The letter says my new tax code in April will be 13T which replaces 84T. It says any income from a pension I am waiting to hear about will be taxed after £130 pa

My projected income based on DWP figures is £157 per week plus £800 pa from a small occupational pension, no other income. This means my income will be £8964 and the new tax allowance is £10600. This means a difference of £1636, not £230.

Have I misunderstood?

jem16

Murphybear wrote: »

I received an HMRC letter this morning which I don't understand. I will phone them up but at this time of year it could take all day.

Do they work at weekends?

They are open on Saturdays till 4pm. You may get them. However if during the week best time is at 7:45am.

The letter says my new tax code in April will be 13T which replaces 84T. It says any income from a pension I am waiting to hear about will be taxed after £130 pa

The t suffix usually indicates something in your tax code will need to be reviewed. Often a t suffix is used when your allowances are split over 2 sources of income.

Will you just have one pension income apart from the state pension?

Are you working at the moment or will you still work?

My projected income based on DWP figures is £157 per week plus £800 pa from a small occupational pension, no other income. This means my income will be £8964 and the new tax allowance is £10600. This means a difference of £1636, not £230.

Have I misunderstood?

Normally your tax code for your occupational pension will include your personal allowance minus a deduction for the state pension. In your case this would be £10,600 minus £8164 leaving £2436 so your tax code would be 243L.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/67822531#Comment_67822531

I currently claim ESA and my retirement pension starts on 6th March.

The DWP wrote to me in November last year to confirm my pension date and said they would send further details by 20th February and I didn't need to contact them about it unless I wanted to defer the state pension.

I have received a letter from them with all the details including a complete breakdown of the basic pension and all the "extra" pensions. They confirmed that it would be paid into the same account that I receive my ESA payments and the same frequency.

So I didn't have to claim my state pension, they did it all for me.

What exactly does your Notice of Coding show?

Is there an assumption that you will be receiving ESA (or some other taxable benefit) and a pension?

System

For some reason they appear to be allocating a low T codes to pensions. They did the same with mine. Allocated 10T to my pension when it has always been BR. Since my primary income is greater than the full allowance it makes life easier to leave my pension as BR.

One quick call and everything back as it should be.

Murphybear

Thanks for the responses.

I have been receiving state pension since 6th March. Before that I was on ESA. Plus occupational pension of £800 pa. I am waiting to hear about another occupational pension but they are taking forever to get back to me.

I'll try phoning them first thing Monday

jem16

Murphybear wrote: »

Thanks for the responses.

I have been receiving state pension since 6th March. Before that I was on ESA. Plus occupational pension of £800 pa.

So does the new tax code refer to that occupational pension provider? It will tell you this on your Coding Notice.

I am waiting to hear about another occupational pension but they are taking forever to get back to me.

When you say "they" do you mean the pension provider or HMRC? Is this other pension in payment yet?

Murphybear

All sorted. They had not received notice that my ESA had finished when they generated the code so had included that in error.

I would like to thank whoever suggested phoning them at 7.45 am, it worked a treat, I got through immediately! Their website says they are open at 8.00 am.

xylophone

They had not received notice that my ESA had finished when they generated the code so had included that in error.

I wondered whether this might have been the case - post 3.

Murphybear

xylophone wrote: »

I wondered whether this might have been the case - post 3.

You were right:T