Pensions and tax codes.

Dazed_and_C0nfused

badmemory said:

Please bear in mind for the future that the K code means they can only take 50% of that income in tax.  It may not be relevant now but with tax allowances not increasing it could do in the future.  They may insist that you do simple assessment rather than filing self assessment.  If so please check their figures VERY carefully.

Always sensible to check any tax calculations but Simple Assessment really isn't something you "do".

It's just an alternative (formal) notification if your tax liability from HMRC which gives you the right to question and, if necessary, appeal against their calculation.

Dazed_and_C0nfused

It's that, due to BIK, which will stop once I stop working. Can I inform the HMRC , immediately when I stop, to speed up the change back to 1257L ?

You can always update things during the year if circumstances change however I think you're a bit optimistic if you think your code would revert back to 1257L.

If the employment happened to finish at the end of the year that would be likely (for the next tax year) but a mid year change would normally just mean there is a smaller BIK entry to include in your code for the remainder of that tax year.

eastcorkram

Dazed_and_C0nfused said:

It's that, due to BIK, which will stop once I stop working. Can I inform the HMRC , immediately when I stop, to speed up the change back to 1257L ?

You can always update things during the year if circumstances change however I think you're a bit optimistic if you think your code would revert back to 1257L.

If the employment happened to finish at the end of the year that would be likely (for the next tax year) but a mid year change would normally just mean there is a smaller BIK entry to include in your code for the remainder of that tax year.

Don't think I've ever been called optimistic before. I'm definitely glass half empty , and just about to knock it over type!

I just meant eventually it would revert to 1257L,  if it wasn't for the state pension deduction, and was wondering if I could do anything to speed things up. My employer can take four months to adjust a tax code after they've been notified about it. All govt departments seem to be buried under workload and slow. 

As for finishing, I could do it at the end of next March. Especially if that simplified the tax situation. I've not got a date set in my head yet, but I expect it to be anytime between now and Dec 2024. 

eastcorkram

If I did need to do self assessment. How would I know? Presume HMRC tell me, but what would the reason be?

xylophone

If I did need to do self assessment. How would I know? Presume HMRC tell me, but what would the reason be?

The Irish State Pension?

https://www.litrg.org.uk/tax-guides/migrants/what-uk-tax-do-i-pay-my-overseas-pension

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

eastcorkram

@xylophone

Excellent stuff. So, I inform HMRC , via self assessment, once that's in payment. Then presumably every year after that. Hopefully I can do this as soon as it starts , and not a year in arrears. Then they should be able to code it. 

I thought I'd have to tell someone. It seemed odd that I would retire, and not let anyone know. Otherwise the only person who would know would be me. Though the OH might spot it.