HMRC Tax

Petite60

HMRC are taxing my small NHS pension in full despite this being well under the Personal Allowance threshold. I gave up work Jan 2022 due to health reasons and claimed my NHS pension age 60, this v small NHS pension is my only source of income. HMRC have made a prediction I will earn over £20,000 in the next tax year even tho I am not in employment. Taxing my pension money is seriously impacting on my finances. Any advice would be gratefully received before I phone them again. I previously called them about this to no avail.

Dazed_and_C0nfused

Does your Personal Tax Account show,

1.  That your previous job has now ended?

2.  That the NHS pension people have submitted details of the pension they are paying?

If yes to both then all you need to do is advise HMRC that your only PAYE income is now the NHS pension and you would like your tax code allowances allocating to it.

They should make that your main source of income and likely issue tax code 1131N or 1257L (depends on whether you have applied for Marriage Allowance or not).

Once the new tax code has been sent to the NHS pension people they will make any tax refund due for 2022:23as part of your next pension payment.

Any refund due for 2021:22 will be made by HMRC later this summer.

nigelbb

You should able to go into your online HMRC account & remove your old employer which will result in a new tax code.

Petite60

Checked online account and employer isn’t noted so they must know. I can’t see anyway online to update anything now.

Petite60

Thank you I will try phoning HMRC today to ask them to make my pension my main source of income again and adjust my tax code. They were not very helpful last time so fingers crossed 🤞 

molerat

Your account will show all employments, codes set against each and how the total allowance coding is arrived at.  What does it show for that ?

Petite60

For 3022/23 it says my tax code on the main pension is SOTX and for the other it says SBR I understand what this stands for but do not understand why it is being applied as this is my only source of income and it is more than 5k under the personal allowance I have no employment so my personal allowance can’t have been used up???

Petite60

Just spoken with HMRC and using the advice from Dazed_and_C0nfused re asking for my allowances to be applied to my pension they have updated my records to reflect this. Thank you so much for the help here apparently it was an oversight on the HMRC system. The HMRC guy was really helpful the ones I’ve spoken to previously not so much. Thanks everyone really appreciate you taking the time to offer advice.