why no tax deducted??

Brie

So start of the new tax year and I've got my payslip for my pension.  And no tax has been deducted.  

This is my monthly payment for a DB OPS.  It's not a lot, a few hundred, so over the course of the year won't bring in enough that I would need to pay any tax.  Except that I also still work and presumably will be taxed on that.  It's also not a lot, another few hundred, so between the two I expect I won't earn enough to pay tax.  But I'll also have my SP kick in later in the year and that will def take me above the threshold.  

So does this mean I won't pay tax at all until the SP kicks in??

molerat

What tax code is on the pension ?  What is the tax code on the job ?  Your on line tax account should show the codes allocated.  If both the pension and job do not add up to your personal allowance you won't pay any tax.  Until the SP comes into payment HMRC cannot plan for that. Have you worked out what your total income for the year, including SP, will be ?

Brie

Tax code on the pension is 984M for my pension for the current year.  Last year it was 1416M.
My employment tax code last year was 3T.  No idea what it will be this year.

But I really appreciate the prompt to look on HMRC @molerat!  This appears to say that I overpaid tax to the tune of about £800 last year!  So presumably that will be sent to me at some point.  It also shows that I haven't paid tax on my pension either.  Some was deducted initially when I had a larger income but then was paid back to me.  

It's difficult to know precisely what I'll be paid this year as my current part time role has increased in both hours and hourly rate and frankly I haven't really kept good track of what that will be.  (I'm doing it for reasons other than money and I trust the people doing payroll.)  But a guess including my SP it looks like I might get a grand total of £16k (ish).

So next complication is that this doesn't include my foreign state pension.  Total for this is about £2k.  Haven't worked out yet what I need to do tax wise about that in either country.  I'm hoping I won't be taxed in both!!  I'm wondering if this means I'll need to do a self assessment - never done that in the UK so that will be a treat!!!

[Deleted User]

Is this the monthly payslip for April? Very early in the month. Today is only the 4th - still in 2022/23 tax year.

Brie

purdyoaten2 said:

Is this the monthly payslip for April? Very early in the month. Today is only the 4th - still in 2022/23 tax year.

Yes - payday is 6th so would have already been set up even if it is for 2023/4.  Weirdly I don't always get a payslip - not sure why.

Dazed_and_C0nfused

Brie said:

purdyoaten2 said:

Is this the monthly payslip for April? Very early in the month. Today is only the 4th - still in 2022/23 tax year.

Yes - payday is 6th so would have already been set up even if it is for 2023/4.  Weirdly I don't always get a payslip - not sure why.

I think DB pensions often provide one for the first payment of each tax year but after that only if an amount changes i.e. pension increase or tax change.

chrisbur

Brie said:

Tax code on the pension is 984M for my pension for the current year.  Last year it was 1416M.
My employment tax code last year was 3T.  No idea what it will be this year.

This code would give you an allowance before tax of about £820 for the month, was your pension less than that?
If your pension was below this amount might be worth looking into moving some tax allowance to your job if tax is going to be paid on that.

xylophone

I think DB pensions often provide one for the first payment of each tax year but after that only if an amount changes i.e. pension increase or tax change.

But if you log in to the administrator's web site, you may find that there is a monthly statement on line.

Relative's scheme does this but  at certain points,  sends a physical statement through the post as described above.