Having monthly private pension paid without tax deducted

alankearn

The total of my wifes state and private pension are below the level needed for her to pay income tax but the pension provider deducts the tax on her private pension.

Does anyone now of the form needed to apply to have her private pension paid without tax deducted by her pension provider

Thanks

chrisbur

HMRC would normally issue a code that gave a tax allowance just above the amount of pension so that no tax was deducted. What tax code is being used and how much is the pension? Have you checked the personnel tax account to see what code HMRC have given to this pension? Is there any other taxable income?

xylophone

The total of my wifes state and private pension are below the level needed for her to pay income tax but the pension provider deducts the tax on her private pension.

Is your wife's situation that she has savings interest (as well as pension income)?

It could well be that HMRC are taking this into account in the tax code even though her pension income may be within her Personal  Tax Allowance and even though she may be entitled to the full "starting rate for savings" and the Personal Savings Allowance.

And it could also be that the amount of interest earned is not accurate for the year in question.

She might want to check her personal tax account

https://www.gov.uk/personal-tax-account

Otherwise, she will need to contact HMRC (by phone or by post) and set out her full circumstances.

See https://www.gov.uk/apply-tax-free-interest-on-savings

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

https://www.thisismoney.co.uk/money/saving/article-9664425/Hit-savings-tax-trap-Double-whammy-low-rates-HMRC-delay.html

alankearn

Thanks for your replies I will follow up on the advice/links you have provided

Dazed_and_C0nfused

If you provide some details here about the tax codes and amount of State and private pension she expects to get in the current tax year it should be possible to identify where the problem is and then you can contact HMRC and resolve it with no complications.