Aviva drawdown and tax deductions (Edit) - new additional quick question

Sea_Shell

Thrugelmir said:

I always receive rebates by BACS. 

The online form we completed didn't give us that option, sadly, otherwise we would have requested it. 

Sea_Shell

Cheque received!!!

Matches what we were expecting, to the penny.

Handy, as we're popping to town on Wednesday already.

Sea_Shell

Another quick question.   DH has just received his first monthly DD payment from his (other) crystallised Aviva pension, but has been taxed £20, being the MA not being taken into account (which IS noted on his on-line tax account)

Personal allowance £12,570.  Marriage allowance £1,257 (effectively), so total at zero tax = £13,827 / 12 = £1152.25

DD set at £1150.   Amount received £1129.80.

How/when will this be refunded?   Will Aviva get notified of a new (MA) tax code via HMRC and it'll get adjusted next month, or will they deduct this £20 every month throughout the year, and they we have to wait for the end of the tax year for the overpayment to be calculated?  

Do Aviva send (or enable you to download) a "payslip" showing your deductions?

Thank you in advance.

molerat

What does his tax account show as set against that pension ?  If this is the first take then it will have been taxed at 1257M1as the pension co have no alternative until told differently by HMRC.  HMRC should then issue a code, if the only income source then the whole 1383 code cumulative, and anything deducted this month will be refunded in the next take.

Sea_Shell

Yes, this is the first monthly payment from this (or any) pension, so good to know that it should be sorted next month.

When would this pension show up on HMRC?    As soon as they've received the "paperwork" from Aviva, as if they are a new "employer"?

dunstonh

Do Aviva send (or enable you to download) a "payslip" showing your deductions?

They put a copy of each month's payslip in the online correspondence folder.

DH has just received his first monthly DD payment from his (other) crystallised Aviva pension

That will be on month one tax code.  HMRC will notify Aviva what tax code to use.  Usually this completes by month 2.

molerat

Sea_Shell said:

Yes, this is the first monthly payment from this (or any) pension, so good to know that it should be sorted next month.

When would this pension show up on HMRC?    As soon as they've received the "paperwork" from Aviva, as if they are a new "employer"?

Within a matter of days, the pension provider will send the details electronically so pretty much instant.

Sea_Shell

Well, we've just received the 3rd monthly payment, and still the incorrect tax has been deducted ☹️

Should we chase (who), or wait for it to all come out in the wash?

It's only short £20 per month.

Dazed_and_C0nfused

Why do you think it's wrong?

Has a tax code been issued to the pension company and if so are they using it?

Sea_Shell

Dazed_and_C0nfused said:

Why do you think it's wrong?

Has a tax code been issued to the pension company and if so are they using it?

Latest "Payslip" shows tax code of 1257L

It hasn't taken the additional marriage allowance into account.

HMRC have this allowance noted, and applied it correctly last tax year to a lump sum.