Company Pension Query

laserbeam

I was just wondering if someone can advise me as I have a company pension which although not large it helps.Up until Feb last year it paid me £170.23 per month.Then in March it paid £173.53 a rise of £3.33.Then when I was paid in April I was paid £168.33 which is a deduction of £5.68.When I spoke to the pension people they said they said something about going over the limit so I paid more tax.So what was the point in getting a rise which actually meant my pension goes down.I am just going to look at my previous bank statements to see if this has happened before.I will let you know what I find.Just  wondered if someone else has had this problem.

Dazed_and_C0nfused

Is it the pension that has changed or just the tax?

AlanP_2

What other taxable income do you have e.g. State Pension and how much is it?

It's possble that your SP + company pension is now just over the personal allowance of £12.5k a year so you are paying a bit of income tax. SP is paid gross and any tax due is collected via private / company pension payments through the tax code and PAYE.

If this is the case then you will probably see a slight increase in April as personal allowance goes up to £12570 for 21/22 tax year.

laserbeam

Dazed_and_C0nfused said:

Is it the pension that has changed or just the tax?

They told me it was the tax

Croeso69

Do you still have the payslips from last March and April to show all the deductions (and tax code) in both months?
It could well be your pension's tax code has gone down in April due to an increase in your state pension?

dunstonh

So what was the point in getting a rise which actually meant my pension goes down

State pension is paid gross but is taxable.  Any tax due is taken from the company pension.

It sounds like you have crept above £12,500 (the personal allowance you can earn tax free). If you go above that amount, you have 20% tax deducted.        You still get to keep 80% of the increase.

 If you tell us your other income, the should confirm it.   

laserbeam

I do not get a monthly statement all I get is my P60 around about April.I should have the P60s from all my pensions if they arew any use.

Croeso69

laserbeam said:

I do not get a monthly statement all I get is my P60 around about April.I should have the P60s from all my pensions if they arew any use.

Interesting. I get a payslip every month from both my (small DB) pensions. So I can see all the deductions every month.

dunstonh

laserbeam said:

I do not get a monthly statement all I get is my P60 around about April.I should have the P60s from all my pensions if they arew any use.

Most providers do not give monthly payslips for the pension payments.  Some do. Some only issue one when the amount changes. Some store them on their online system in their documents folder for you to download if you wish (and most do not wish).

laserbeam

I have got three P60's in front of me and and the tax code on these three statements is BR so no tax was paid on these pensions and the 4th pension pays £ 168.33 after tax which is £14.20 and the tax code for this is 132T.This is the pension I was querying jus have to find one more P60 and that just leaves the state pension.

laserbeam

Apologies I got those figures wrong two of those with BR as the tax code I did pay tax I was looking at tax paid on previous employment.On one of them Gross Pay was £832.32 tax paid £166.40 and the other one paid Was £176.04  tax paid £35.20 and these both had a tax code of BR