HMRC showing pension income as coming from employment

flaneurs_lobster

I have a DB pension that has been in payment for about a year. The pension is administered by a third party but the payments are made from my ex-employer's payroll. I'm assuming that this is why my HMRC PAYE Summary shows this income as coming from employment rather than pension.

The amounts and tax codes seem OK but I'm unsure if having this income misclassified has any other ramifications, and should I be asking HMRC to amend their records.

Perfectly happy to just let things continue "as is" unless there are consequences that I'm not aware of.

Does anyone have any insights or thoughts?

LHW99

No ideas about (future?) ramifications, but it would do no harm writing to HMRC and pointing this out, and keeping a copy of the letter to prove you did so.

Don't expect a quick answer though.

dunstonh

I have a DB pension that has been in payment for about a year. The pension is administered by a third party but the payments are made from my ex-employer's payroll. I'm assuming that this is why my HMRC PAYE Summary shows this income as coming from employment rather than pension.

The pension payment should go through a payroll system and is subject to PAYE (so payslips and P60 expected).    However, you would typically expect it to be a different payroll to the employees.

You would expect to see it listed on the PAYE summary.

Tax_Accountant

It would appear like PAYE on HMRC system, but if you are filling tax return, there is separate section to add pension. 

MallyGirl

are you being hit with NI on it?

flaneurs_lobster

MallyGirl said:

are you being hit with NI on it?

Good point [checks HMRC app]. No, NI deductions showing as zero against all payments.