Pension taxation

Kim1965

Just some quick info required please.
My wife has ill health retired (still sorting some of it out).  Db pensions put into payment so far are small and being taxed at 20%.. At the end of this tax year will hmrc automatically refund the tax paid,?Her income   will be close to but will not exceed £12570. 

Dazed_and_C0nfused

What other income does she have in the current tax year?

Is there an ongoing PAYE source other than the DB pensions (one, two, three???) being paid?

Linton

At the end of the tax year HMRC will refund any tax due.

What happens is that when a pension starts to be paid there is no tax code so an emergency default code is used.  The first payment will alert HMRC to issue a tax code and things should sort themselves out in subsequent payments.  Also it is possible that HMRC do not know your wife has retired and are taxing her assuming that her wages are taking all the allowance.

If she logs in to her tax account I believe she can correct things like that.

Kim1965

She was on half pay until May when she was medical ly retired, so there will be a couple of months (3k paye). Currently has two db pensions sorted to payment, awaiting Tps to cough up eventually(painful ly slow).
 We will contact hmrc once all the db pensions are sorted. Her dc pension has not been access ed and is still being added to. 
 

dunstonh

HMRC give the payroll department the tax code to use from month 2.   Then over the remaining months of the tax year, it will refund any excess due with it endiing on the correct figure after March payroll.