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P60 change in tax code for pension?

Ballyholme
Posts: 8 Forumite
in Cutting tax
My Father had received a change in tax code in his P60. Its all a bit strange.He is in his early 60's and retired due to medical issues.
He receives PIP disability benefit and his old work place pension
it says personal allowance £12500
Less adjusted to rate band £17700?
Work place pension - £5200 it now says K519 replaces 1099l?
A second pension says £0 of this income is tax free DoT replaces 150T
The third a drawdown pension is £0 and says BR tax code?
last bit is totals of tax free amount -£5200?
Does this mean tax owed? A quick google gets a bit concerning with K codes?
I'm just a bit worried about this, PIP was tax free as far as I knew and so he should be £7300 below threshold? is this the drawndown in case he takes a large amount?
He receives PIP disability benefit and his old work place pension
it says personal allowance £12500
Less adjusted to rate band £17700?
Work place pension - £5200 it now says K519 replaces 1099l?
A second pension says £0 of this income is tax free DoT replaces 150T
The third a drawdown pension is £0 and says BR tax code?
last bit is totals of tax free amount -£5200?
Does this mean tax owed? A quick google gets a bit concerning with K codes?
I'm just a bit worried about this, PIP was tax free as far as I knew and so he should be £7300 below threshold? is this the drawndown in case he takes a large amount?
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Comments
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Getting notified of a tax code via a P60 is strange indeed. Especially in March.
It can't mean any tax is owed for that tax year as it hasn't started yet.
Maybe you could confirm exactly how may pensions your father has?
You start by saying he receives PIP (which isn't taxable and is irrelevant) and his old work place pension. But the tax code refers to 3 pensions.
What do you expect his actual taxable income to be in 2019:20? Obviously you can only estimate this now but this is all HMRC can do as well. It might be you/he just need to provide HMRC with more accurate/realistic estimates?0 -
He has three pensions.
One is his usual workplace - £5200 a year.
One is a set up as a drawdown pension, so he doesn't get a regular amount but can take amounts out as required, this usually isn't touched. This this shows as tax free amount £0
One is another small pension, he apparently gets about £1000 a year but this shows as tax free amount £0
Its weird not showing as any money owed but says "tax free amount -£5200" at the end?0 -
The code is like that because of how much HMRC estimate income he will have from his other pensions.
All he needs to do is to work out what the most accurate figures will be for each one from the forthcoming year and get in touch with HMRC and ask them to update them.
They can then recalculate his tax code to take account the most upto date information.0 -
I think you're right.
I'm guessing its the draw down that they can't guess if its nothing or 30k or something as income and probably the smaller one too?
I've asked his pensions/financial guy to give him a bell, hopefully he can sort.
Such a bloody stress!
Thanks :j0 -
At least he was some that are predictable!
Assuming these two are fairly easy to estimate accurately then in theory he could have tax codes against the £5,200 and £1,000 which mean no tax would need to be deducted from either.
But that really depends on what he estimates he will take from the drawdown one. That will have a big impact on how his tax codes are calculated.0 -
I'm guessing details on the smaller pension should be easy enough its approx £1000 a year. The draw down will probably be one lump sum. I'd imagine say 3k say if anything at all.
He should still be under the £12500 allowance. I just don't want this not getting dealt with and causing chaos. Hopefully pension guy can sort this with HMRC.0 -
Can you explain how he has got a P60 at this time of year? If it's for 2018/9 then it could only be valid if payment is received less frequently than monthly, because monthly or more frequently would require at least 1 more payment in this tax year. And if it's for 2017/8 it is at least 9 months late.0
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He didn't!
The level of detail suggests it was a notice of coding.
Especially with PA of £12,500.0 -
Has your father obtained a new state pension payment for future planning purposes?
https://www.gov.uk/check-state-pension0 -
Dazed_and_confused wrote: »He didn't!
The level of detail suggests it was a notice of coding.
Especially with PA of £12,500.
That is of course the most likely explanation, but I'd still like the OP to confirm it as writing P60 rather than P2 seems like quite a big error.0
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