tax on pension

jem16

Ainsley1 wrote: »

Jem as per my last post it was for tax year 13/14, as has been my habit SA done after Christmas when other demands are at a minimum and the result of that showed up an underpayment from one pension provider. Clarification of the reason (mnth 1 basis) obtained in Jan from the provider which did not align with the coding notice info I had but by then tax payment virtually due so underpayment and minor adjustment ( insignificant amount) sent to HMRC. I was not asked for a repayment but as usual ensured tax account not in debit by the deadline of end of Jan.
Hope that clarifies but not sure if it is relevant to the problem I have with error in coding notice to me!

I was trying to work out why it was not possible to code out the underpayment but it looks like you may just have missed the deadline of filing by end of December.

You do say HMRC are not at fault such as citing multiple incomes make it difficult etc and imply I could have had other options. I do not think that is the case (unless I did early SA and there are good reasons I do not that are not relevant). Although my pension is made up from several providers HMRC were aware (I told them in advance) what the income would be from the new provider and the others remained extant.

I think it's more that HMRC has a certain amount of time to act on any information and they seem to be within those guidelines. If you feel they have not acted correctly then put in a complaint citing ESC A19 and see where it gets you.

Ainsley1

Thanks for taking the time and trouble to respond jem. I see you are stalwart on this site but I guess there is little point in taking it forward as an official complaint. :beer:

jem16

Ainsley1 wrote: »

but I guess there is little point in taking it forward as an official complaint. :beer:

The only thing I can suggest is for you to let us see the actual wording of the coding notice where you say that HMRC told you that the coding was applied to make sure the tax was correct for the year.

Do you also have some proof that the tax for that specific pension was not correct over the whole year - ie the P60?

I'm really just asking as it's possible for the tax to be correct for that income but not to be correct overall as the multiple sources added up take you into the higher rate tax bracket for example.

Ainsley1

For the latter it definitely did not take me into a higher tax bracket as the totals of all my income still keep me well inside the upper limit of basic rate!!

As far as the notice is concerned a slight problem to reproduce it here as I no longer have a full copy of it, just an aborted print copy with the first page. Trying to be tidy and keep less paper around I decided to use the HMRC online version. Not a good idea, it now transpires there are time limited electronic copies available online and those for 13/14 are not available - no doubt I could get copies from them if so demanded.
So advice must be to still keep paper copies! Hindsight is wonderful!
I'll have a look to see if I still have page one and can post that but it really probably is pointless without the full pages showing any special notes. I really do not have the will to go back to HMRC to request a copy any more _pale_

jem16

Ainsley1 wrote: »

For the latter it definitely did not take me into a higher tax bracket as the totals of all my income still keep me well inside the upper limit of basic rate!!

I'll hazard a guess then that your pension should have been on a BR tax code as your main tax code was being used elsewhere? If this was the case did you tell your pension provider?

I'll have a look to see if I still have page one and can post that but it really probably is pointless without the full pages showing any special notes.

Yes it's really the special notes that's required.

Ainsley1

Excellent guess about BR code....

Should I have told the provider? Would they have applied a different code without authority from HMRC? Was I just being naive to assume they and HMRC would get it right just as they had for my previous 40+ years working life and the start of my other pensions that all had no problems? Should I not have belived what the coding notice told me? Was it right that HMRC ignored the info I gave them about the value of the new pension that was due to start? Am I supposed to be a taxation expert and understand all the fine detail of the tax system? Should I not get an apology, as minimum, when our tax people make an error?

Come now I think that I acted as reasonably as a lay person could have done and there are many who would have been less aware and might have taken no actions at all, and IMHO quite understandably and reasonably!

I think this thread has run it's course and there is probably little we can add. Thank you for your contribution.I am possibly more experienced now and more aware of potential pitfalls, much good it will now do me, but hopefully will help others.

Best wishes.

jem16

Ainsley1 wrote: »

Come now I think that I acted as reasonably as a lay person could have done and there are many who would have been less aware and might have taken no actions at all, and IMHO quite understandably and reasonably!

Then make a formal complaint although I don't think you have much of a chance.