Tax Issue

ExJCB

I have recently retired at age of 58. so 9 years off state pension, I have 3 private pensions which in total come to less than £600 / month. All 3 are being classed as CRB so it looks like being taxed @ 20%. Is this because I have 3 seperate pensions, will this always be the case ? Thanks.

p00hsticks

By CRB, do you mean that all pension payments currently have a BR code.
Have you only started drawing them ? 
Are HMRC yet aware that you have ended your employment ? 
Are you looking at payments for the current tax year 2024-25 or the one just ended.
If the latter, then it coudl be that your employment used your entire allowance for the year. 
    
Once the pensions are in payment, and HMRC are aware of that and that you are no longer employed, then they should provide each pension company with a separate tax code to use that will make best use of your entire tax allowance. 

But if not I believe you should be able to propose adjustments to how your allowance is split via your online personal tax account.
Personal tax account: sign in or set up - GOV.UK (www.gov.uk) 

eastcorkram

Are you supposed to inform HMRC if you stop working? I've read conflicting opinions. Some seem to say of course you are, how else are they going to know. Others seem to say, no, don't interfere with it, they'll work it out for themselves eventually. 
I think I'm favouring the first option. 

Linton

eastcorkram said:

Are you supposed to inform HMRC if you stop working? I've read conflicting opinions. Some seem to say of course you are, how else are they going to know. Others seem to say, no, don't interfere with it, they'll work it out for themselves eventually. 
I think I'm favouring the first option. 

You dont need to inform HMRC when you have stopped receiving wages.  They will work it out for themselves or be told by your employer.  Telling them or changing your Tax Account details may be quicker.

ExJCB

Hi thanks for the feedback, how do I inform the HMRC, been on their website and and can not find the option to inform them ?

Sarahspangles

ExJCB said:

Hi thanks for the feedback, how do I inform the HMRC, been on their website and and can not find the option to inform them ?

Have you got the HMRC app? There’s a feature in there where you can see - and manually change - your expected income from employment.

ExJCB

Is that the Govt Gateway or specific app ?

p00hsticks

ExJCB said:

Hi thanks for the feedback, how do I inform the HMRC, been on their website and and can not find the option to inform them ?

I belevie you can do it though  your personal tax account (for which you'll need a Government Gateway id) as in the link I posted earlier. I don't know about the app...
 
AS far as Informing HMRC that you;ve stopped working, if you were in regular employment and were issued with a P45 when you finished, your employer should be sending the details to HMRC automatically.  

Sarahspangles

ExJCB said:

Is that the Govt Gateway or specific app ?

The app uses the Govt Gateway info to log in. Anything that’s not (yet) built into the app links out to the website.

Despite the fact it’s an app that tells me I’m paying taxes, I think it’s quite good!

MetaPhysical

Sarahspangles said:

ExJCB said:

Is that the Govt Gateway or specific app ?

The app uses the Govt Gateway info to log in. Anything that’s not (yet) built into the app links out to the website.

Despite the fact it’s an app that tells me I’m paying taxes, I think it’s quite good!

It is a good app for quickly checking things but there are too many items that make you have to log in to HMRC website.  Hopefully this will improve in time.

molerat

MetaPhysical said:

Sarahspangles said:

ExJCB said:

Is that the Govt Gateway or specific app ?

The app uses the Govt Gateway info to log in. Anything that’s not (yet) built into the app links out to the website.

Despite the fact it’s an app that tells me I’m paying taxes, I think it’s quite good!

It is a good app for quickly checking things but there are too many items that make you have to log in to HMRC website.  Hopefully this will improve in time.

Such as? The app often transfers me to the website but no need to log in.