Tax on NHS pension

Petite60

Good afternoon 
I have just discovered I am being taxed for 2023/24 on my NHS pension. Just checked on receiving an email update from SPPA. I have been in receipt of my NHS pension since Jan 2022. It is split into 4 pots and combined together does not exceed my tax personal allowance yet 2 of the individual pots are being taxed can you why this might be happening before I speak to HMRC as they talk round in circles? Thanks 🤞🏼

Dazed_and_C0nfused

Do you mean you have four different NHS pensions i.e. each year you get four P60's?

Hoenir

Have you registered for an online Personal Tax Account ? 

Billxx

Other than the NHS pensions do you have other sources of income?

Petite60

No other income at all sadly 

Petite60

I do have an online Tax account I'm worried about updating the annual amounts in case it makes things worse
I get 4 different P60s each year, one for each scheme. I have 4 different tax codes, a different one for each scheme.
I worked with the NHS so long the scheme changed 4 times in my working lifetime which has caused no end of frustration on receiving my paltry NHS pension. I drew my NHS pension at age 60 as the main scheme allowed this with no penalties, the other 3 were miniscule amounts and I was not allowed to take them in full as a lump sum, had to take part lump sum and annual pension. One pays me 21p a month lol. HMRC have allocated split amounts to each scheme and in total they come to over £4000 under my personal tax allowance, they tax 2 out of the four as they exceed the amount HMRC have applied to them. I'm guessing they will review end of year and give me a rebate but next year will be potentially the same as the schemes are index linked, I don't think they should be taking tax at all on the premise they can send out future rebate when it gets to end of tax year.
They don't answer the phone so very frustrated.
Anyone offer any help on what to say to sort this and to stop the same situation happening next year? 

Petite60

Its the unfairness that sticks when you see the wealthy avoiding paying tax and working around the system.

uknick

Petite60 said:

Its the unfairness that sticks when you see the wealthy avoiding paying tax and working around the system.

I'm afraid you're considered low hanging fruit.

Have read of this to make your blood boil;

HMRC has not charged a single company over tax evasion under landmark legislation | HMRC | The Guardian

It might be behind a paywall (The Guardian changed their website recently), but the title gives you the gist, nobody prosecuted in the 6 years the law has been in place.

Flugelhorn

I am not sure how you ended up with different payments -  I started in the NHS in the early 80s - there were scheme changes since then but I still get just the one payment (even though I was in officer and practitioner pensions which were calculated separately) - I though they usually merged payments from different schemes 

Hoenir

uknick said:

Petite60 said:

Its the unfairness that sticks when you see the wealthy avoiding paying tax and working around the system.

I'm afraid you're considered low hanging fruit.

Have read of this to make your blood boil;

HMRC has not charged a single company over tax evasion under landmark legislation | HMRC | The Guardian

It might be behind a paywall (The Guardian changed their website recently), but the title gives you the gist, nobody prosecuted in the 6 years the law has been in place.

HMRC said it has 11 live investigations and is looking into a further 24 possible cases. It has also reviewed and rejected an additional 94.

Criminal prosecution is a totally different level. Doesn't mean that unpaid tax wasnt recovered. This how myths perpetuatate pn social media

molerat

Petite60 said:

I do have an online Tax account I'm worried about updating the annual amounts in case it makes things worse
I get 4 different P60s each year, one for each scheme. I have 4 different tax codes, a different one for each scheme.
I worked with the NHS so long the scheme changed 4 times in my working lifetime which has caused no end of frustration on receiving my paltry NHS pension. I drew my NHS pension at age 60 as the main scheme allowed this with no penalties, the other 3 were miniscule amounts and I was not allowed to take them in full as a lump sum, had to take part lump sum and annual pension. One pays me 21p a month lol. HMRC have allocated split amounts to each scheme and in total they come to over £4000 under my personal tax allowance, they tax 2 out of the four as they exceed the amount HMRC have applied to them. I'm guessing they will review end of year and give me a rebate but next year will be potentially the same as the schemes are index linked, I don't think they should be taking tax at all on the premise they can send out future rebate when it gets to end of tax year.
They don't answer the phone so very frustrated.
Anyone offer any help on what to say to sort this and to stop the same situation happening next year? 

You need to look at what HMRC think all your income streams are and the annual amounts they are paying you.  If these amounts are incorrect or there is an additional unknown income stream this can easily be sorted within the tax account without having to speak to HMRC.  I set the correct income at the start of  every year because they always estimate incorrectly - usually underestimate which in your situation can result in a lower tax code resulting in tax being deducted and some spare code being set against interest. (At the start of this year they set my estimated income from a PS pension, which received the 10.1% increase, lower than 22-23. How the system worked that one out is anyone's guess)  You won't upset anything by doing this and the overpaid tax will be returned at the next pay day after the codes are changed.  If you want to come back with some specifics someone will point you in the right direction.