Higher tax rate (code D0) on widows pension

uss_tish

Forgive the ignorance but just need advice as to whether I or the HMRC should advise my husband’s pension provider (from which I receive a dependents pension) that I have retired from my post and that my dependents pension should no longer be taxed at the higher rate? 

I know my employers advise HRMC and my pension provider of my retirement but wasn't sure whose responsibility it was to tell my widow’s pension provider. The second part of my question is will they change it mid tax year or adjust and refund at the end of the year? 

Dazed_and_C0nfused

They should only alter your tax code on receipt of new instructions from HMRC.

Do you mean you have stopped work and aren't moving to a new job?

If so what sources of taxable income do you have that are ongoing (ignoring investment income).

Linton

uss_tish said:

Forgive the ignorance but just need advice as to whether I or the HMRC should advise my husband’s pension provider (from which I receive a dependents pension) that I have retired from my post and that my dependents pension should no longer be taxed at the higher rate? 

I know my employers advise HRMC and my pension provider of my retirement but wasn't sure whose responsibility it was to tell my widow’s pension provider. The second part of my question is will they change it mid tax year or adjust and refund at the end of the year? 

HMRC are responsible for ensuring the tax codes are correct.  The employer/pension provider has no choice in he matter - they must use the tax codes given to them by HMRC..  The tax will all be sorted after the tax year end and tax codes adjusted and refunds paid as appropriate.  Whether HMRC will automatically issue a new one for your pension in the middle of the year I dont know.  There would be no harm in asking them.  If you have set up your HMRC tax account I think you could set your pension employment income to zero there which would trigger a new tax code.

Dazed_and_C0nfused

If you have set up your HMRC tax account I think you could set your pension income to zero there which would trigger a new tax code.

Why would you do that??

Linton

Dazed_and_C0nfused said:

If you have set up your HMRC tax account I think you could set your pension income to zero there which would trigger a new tax code.

Why would you do that??

Good point, I meant employment!

uss_tish

Thank you for your replies, to clarify I wont be working but taking my workplace pension and my only other income will be the widows pension which combined, bring me below the higher tax band.

I’ll sit tight as seems it will be resolved at the end of the tax year.