Tax Advice Please on Pension

dbcalifornia

Can anyone please advise on following : I recently took my pension from Prudential £312 per month. My circumstance are I am 62, single, not working (retired due to family inheritance), claiming no benefits. My first payment was received OK but today been advised by Prudential that HMRC have changed my tax code to 121T Month 1 Basis. As my income is my Private Pension plus Bank Interest ( not a lot!) there is no way I go over my last Tax Code (1100L) . So, can I get this altered now or do I have to wait to end of Tax Year to reclaim back the Tax?

xylophone

HMRC have changed my tax code to 121T Month 1 Basis.

Contact HMRC - see http://taxaid.org.uk/guides/information/issues-for-employees/employee/paye-and-tax-codes

If you believe your tax code is wrong you should contact HMRC who will issue your employer with a revised tax code as required. This can be done by phone – 0300 200 3300 – or on-line .

For employer read pension payer.

dunstonh

I recently took my pension from Prudential £312 per month.

Unusual to see Pru being used nowadays. They pulled out of the open market option and just offer in-house rates or a few commercial agreements with other insurers but again offering lower than open market rates.

Are you still within the cancellation rights period as you have probably gone for an option that was not the best?

My first payment was received OK but today been advised by Prudential that HMRC have changed my tax code to 121T Month 1 Basis. As my income is my Private Pension plus Bank Interest ( not a lot!) there is no way I go over my last Tax Code (1100L) . So, can I get this altered now or do I have to wait to end of Tax Year to reclaim back the Tax?

T suggests temporary. Probably used it if you had other earnings in this tax year which have used some personal allowance with a plan to move you to a L code next tax year.

What other income have you had in this tax year?

dbcalifornia

Thanks for replies : Finished work 3rd March, so no earnings in current tax year and had code 1100L issued to me. As for Pru - I did go with other advisors but due to guarantees on my pension I was informed that I would be better staying with them, the quotes they gave me were higher than I could optain via anyone else. As stated I have taken pension and received 1st month all OK. Just today received letter saying being taxed on it and know I will not use my taxable allowance for the year as no plans to return to employment.

dunstonh

I did go with other advisors but due to guarantees on my pension I was informed that I would be better staying with them

Thats ok then. That is really the only time Pru are competitve nowadays. GARs from the past.

I would wait a bit longer before chasing anything up. If you have no other income in this tax year then you should be on 1100L. However, it is usually best to wait 3 months before chasing tax codes.

greenglide

If you check your personal tax account on line at https://www.gov.uk/personal-tax-account you will be able to see why they have done this and get it corrected.

zagfles

Just phone HMRC and ask them, no need to wait. They probably think you have around £8-9k of untaxed earnings from somewhere else, if you haven't, put them right!

bigfreddiel

dunstonh wrote: »

Unusual to see Pru being used nowadays. They pulled out of the open market option and just offer in-house rates or a few commercial agreements with other insurers but again offering lower than open market rates.

Are you still within the cancellation rights period as you have probably gone for an option that was not the best?



T suggests temporary. Probably used it if you had other earnings in this tax year which have used some personal allowance with a plan to move you to a L code next tax year.

What other income have you had in this tax year?

T is not temporary, it means you have no tax allowance, or there is not enough information for hmrc to work out your tax allowance.


It will all be worked out at the end of the tax year next April, or when you do your 2016/17 tax return.

Cheers fj

badmemory

It certainly implies some issue with tax. An example given is that income is over £100K. Surely better to sort it in year than have to wait for months into the new tax year for them to decide you have overpaid & eventually refund it.

bigfreddiel

Well I don't have an income over £100k but I have a T code. I have multiple incomes, work, pensions, state pension, interest, dividends.

It was easy to work it all out with a spreadsheet and a few facts.

I'm happy to wait for a tax rebate when I do my tax return.

Just keep up to date records an your tax return will be a ten minute stroll in the park.

Cheers fj