Pension Tax Liability

Timecek

Hi, I have just been fined £100 for not sending an income tax self assessment in. I live off a very small Cornwall County Council pension. I retired in Sept 2019. I was under the impression the Council submitted this for me. I will chase this after the Easter break but before I do, does anyone know if I’m right in my assumption? Thank you. Tim. 

Marcon

Timecek said:

Hi, I have just been fined £100 for not sending an income tax self assessment in. I live off a very small Cornwall County Council pension. I retired in Sept 2019. I was under the impression the Council submitted this for me. I will chase this after the Easter break but before I do, does anyone know if I’m right in my assumption? Thank you. Tim. 

Self assessment tax returns are submitted by the individual or an agent they have appointed to act on their behalf - normally their accountant or other professional adviser. I can't imagine that a County Council would ever agree to take on this role; what makes you think they have accepted responsibility? What's happened in previous years - or is this perhaps the first time you've been required by HMRC to submit a self assessment return?

Silvertabby

No, they never contact HMRC on your behalf.  They will just tax your pension in accordance with HMRC's standing instructions - either using the tax code notified by them or, in the absence of a code, 'emergency' tax.

Dazed_and_C0nfused

Timecek said:

Hi, I have just been fined £100 for not sending an income tax self assessment in. I live off a very small Cornwall County Council pension. I retired in Sept 2019. I was under the impression the Council submitted this for me. I will chase this after the Easter break but before I do, does anyone know if I’m right in my assumption? Thank you. Tim. 

Do you get the State Pension as well?

squirrelpie

If somebody who was employed retires then they wouldn't normally be required to submit a self-assessment, I think. So what are the broader circumstances?

You say you have a Cornwall County Council pension, which kind of implies you were employed by them, but were you ever self-employed?

Timecek

Thank you all. I retired after 32 years in the council during which time I never once filled in a tax return, that, my pension contributions and NI being done by the Council at source with the relevant notice of tax paid sent to me once a year with a pay packet. I do not get a state pension yet nor receive any other income.  I guess I’ve been spoilt. Time to learn how to do it myself. Thank you again. 

GrumpyDil

Start off by contacting HMRC and ask them why you are being asked to complete a self assessment as that's normally only a requirement if you have income which is not taxed at source. 

Timecek

Thank you I will. That aligns with what I believed. 

Notepad_Phil

Timecek said:

Thank you I will. That aligns with what I believed. 

You've not mentioned whether you received a letter asking you to fill one in and you ignored it because you thought it was done by someone else, or whether the penalty was the first contact you had and now you're thinking that surely the council should have done it.

In the latter case, are you absolutely sure that it really is the HMRC that contacted you?  Make sure you check the details the penalty gives with e.g. https://www.gov.uk/contact-hmrc

mark55man

To give you some reassurance please read my thread.  My inattention to my partner's tax affairs was more severe and the HMRC still waived over £1200 in penalties on the basis that she was a PAYE only  (and more than that was below her Personal Allowance)

https://forums.moneysavingexpert.com/discussion/comment/79019214 

Timecek

Dear all, just wrap this up..I contacted HMRC today (after 1.5hrs on hold) and I was told it was a computer generated legacy notification and fine from 2020 when I was last salaried. 5 mins later, fine expunged and no self assessment required in future. Thank you all for your help. T.