Tax change

drh6649

I retired on January the 31st this year and tax code of 465L -- my ex employer stated they had sent information and P45 to the tax people for tax purposes. How long does it take to be advised of new tax code and tax reductions as i am continuing to pay the full tax on my pension ( company ) as while working. also is there anmything that i should do -- fully aware that it will take longer during the current crisis 

Thanks for any help 

unholyangel

Contact them (HMRC). Try webchat if the phonelines are busy.

It should have been fixed by now but you may have retired after they had already sent this year's codes so would require HMRC to fix. 

[Deleted User]

Did you forward your P45 to the company pension provider?

drh6649

thanks unholyangel have sent info via gateway to hmrc
thanks purdyoaten - was informed on retirement the company would do that as well as inform hmrc

[Deleted User]

drh6649 said:

thanks unholyangel have sent info via gateway to hmrc
thanks purdyoaten - was informed on retirement the company would do that as well as inform hmrc

There is no part of the P45 which an employer can send to a new source of income provider, which is what the company pension is. You were misinformed. You should have forwarded parts 2 and 3 to the pension provider and they would have continued to operate the correct code in exactly the same way as if you had changed jobs, for example. That is were the problem occurred. At least for this tax year it should be rectified soon.

jimmo

purdyoaten2 said:

drh6649 said:

thanks unholyangel have sent info via gateway to hmrc
thanks purdyoaten - was informed on retirement the company would do that as well as inform hmrc

There is no part of the P45 which an employer can send to a new source of income provider, which is what the company pension is. 

Funnily enough that is exactly what happened when I retired. My former employer (HMRC) passed my P45 details directly to Civil Service Pensions. That worked perfectly for me with my correct PAYE code and details consistently applied to my pay and then pension.
 However there was no change in my code when I retired and no reason why it would need changing.
OP why do you think your code should change?

[Deleted User]

jimmo said:

purdyoaten2 said:

drh6649 said:

thanks unholyangel have sent info via gateway to hmrc
thanks purdyoaten - was informed on retirement the company would do that as well as inform hmrc

There is no part of the P45 which an employer can send to a new source of income provider, which is what the company pension is. 

Funnily enough that is exactly what happened when I retired. My former employer (HMRC) passed my P45 details directly to Civil Service Pensions. That worked perfectly for me with my correct PAYE code and details consistently applied to my pay and then pension.
 However there was no change in my code when I retired and no reason why it would need changing.
OP why do you think your code should change?

I think that you had a slight advantage there jimmo in that your employer, of all employers, knew and had the means to do that. Other employers are obliged to hand parts 1A, 2 and 3 to the leaving staff member with the understanding that parts 2 and 3 are forwarded to the new employer/new source of income provider as you undoubtedly know. On the op position I imagine ‘full tax’ may be basic rate on the whole pension, having not received the P45.

jimmo

purdyoaten2 said: Ithink that you had a slight advantage there jimmo in that your employer, of all employers, knew and had the means to do that. Other employers are obliged to hand parts 1A, 2 and 3 to the leaving staff member with the understanding that parts 2 and 3 are forwarded to the new employer/new source of income provider as you undoubtedly know. On the op position I imagine ‘full tax’ may be basic rate on the whole pension, having not received the P45.

Yes, a slight advantage purdy. I understood what was going on in my own case. Certainly in the old days of IR the pay section staff ( was it Barrington Road, Worthing?) were not trained taxmen they were trained payroll staff. They did get things wrong.

In my latter days at work I saw things go horribly wrong where employers passed on P45 details to the pension payer and gave a P45 to the employee who already had a new job lined up. The employee then ended up with double personal allowances.

Back to the OP's problem. Differently to you I thought maybe the code 465L was carried over to the pension and the OP expected it to change because they had retired.

I now think there is more chance of you being right than me but I would like to see how the OP responds before going any further.

[Deleted User]

jimmo said:

purdyoaten2 said: Ithink that you had a slight advantage there jimmo in that your employer, of all employers, knew and had the means to do that. Other employers are obliged to hand parts 1A, 2 and 3 to the leaving staff member with the understanding that parts 2 and 3 are forwarded to the new employer/new source of income provider as you undoubtedly know. On the op position I imagine ‘full tax’ may be basic rate on the whole pension, having not received the P45.

Yes, a slight advantage purdy. I understood what was going on in my own case. Certainly in the old days of IR the pay section staff ( was it Barrington Road, Worthing?) were not trained taxmen they were trained payroll staff. They did get things wrong.

In my latter days at work I saw things go horribly wrong where employers passed on P45 details to the pension payer and gave a P45 to the employee who already had a new job lined up. The employee then ended up with double personal allowances.

Back to the OP's problem. Differently to you I thought maybe the code 465L was carried over to the pension and the OP expected it to change because they had retired.

I now think there is more chance of you being right than me but I would like to see how the OP responds before going any further.

I suppose that we are both making best guesses. However, it seems that neither the former employer nor the op has forwarded the P45 to the pension provider. Accordingly the latter should operate BR and that was the basis of my reasoning.

jimmo

OP I would also ask you how the original code of 465L was made. It is not dissimilar to my own which takes account of my State Pension so I assumed you were already receiving State Pension. Were you?

badmemory

This is why I always say that your full tax allowance should always be first used against any pension payment as that is the one that will never stop even if you leave employment.  Although as Jimmo says if you were already receiving state pension the tax you are paying may well be correct.