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Paying Tax on my BT Pension - why ?

Shaky1105
Posts: 19 Forumite

Hi all. I've started drawing my BT pension and I'm getting taxed on it but I don't know why ?
The pension amount is only just over £400 pm, I've decided to call it a day and not bother looking for any more work and I get roughly £50 pm in interest from savings I have. My missus is claiming her full new state pension of £221.20 pw and we can live on what we receive.
My pension is getting taxed on a 1 month basis (BR X) and the tax is just over £80 pm. I haven't done any work at all this tax year but was claiming contributions based JSA until the start date of my pension at the end of May.
I can't help but feel that HMRC have got this completely wrong (unless pensions are calculated differently ?) so I just wondered if I should be contacting HMRC or is it one of these situations that needs time to sort itself out ?
TIA - Shaky
The pension amount is only just over £400 pm, I've decided to call it a day and not bother looking for any more work and I get roughly £50 pm in interest from savings I have. My missus is claiming her full new state pension of £221.20 pw and we can live on what we receive.
My pension is getting taxed on a 1 month basis (BR X) and the tax is just over £80 pm. I haven't done any work at all this tax year but was claiming contributions based JSA until the start date of my pension at the end of May.
I can't help but feel that HMRC have got this completely wrong (unless pensions are calculated differently ?) so I just wondered if I should be contacting HMRC or is it one of these situations that needs time to sort itself out ?
TIA - Shaky
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Comments
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Shaky1105 said:Hi all. I've started drawing my BT pension and I'm getting taxed on it but I don't know why ?
The pension amount is only just over £400 pm, I've decided to call it a day and not bother looking for any more work and I get roughly £50 pm in interest from savings I have. My missus is claiming her full new state pension of £221.20 pw and we can live on what we receive.
My pension is getting taxed on a 1 month basis (BR X) and the tax is just over £80 pm. I haven't done any work at all this tax year but was claiming contributions based JSA until the start date of my pension at the end of May.
I can't help but feel that HMRC have got this completely wrong (unless pensions are calculated differently ?) so I just wondered if I should be contacting HMRC or is it one of these situations that needs time to sort itself out ?
TIA - Shaky
Based on what you have posted you should be able to contact HMRC and get an updated tax code issued which will allow BT to stop deducting tax and refund the tax already deducted when they first use the new tax code.
Having your P45 from DWP would be useful when you contact HMRC.
Remember that when your State Pension starts your total pension income will be sufficient that you will start to pay tax again sooner or later.2 -
Sounds as if you might not have a personal tax account? If not, setting one up could be useful: https://www.gov.uk/personal-tax-accountGoogling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1
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Dazed_and_C0nfused said:The tax code used when a pension starts is determined by the pension payer, BT, albeit using guidance published by HMRC.
Based on what you have posted you should be able to contact HMRC and get an updated tax code issued which will allow BT to stop deducting tax and refund the tax already deducted when they first use the new tax code.
Having your P45 from DWP would be useful when you contact HMRC.
Remember that when your State Pension starts your total pension income will be sufficient that you will start to pay tax again sooner or later.0 -
Marcon said:Sounds as if you might not have a personal tax account? If not, setting one up could be useful: https://www.gov.uk/personal-tax-account0
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Shaky1105 said:Marcon said:Sounds as if you might not have a personal tax account? If not, setting one up could be useful: https://www.gov.uk/personal-tax-account0
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Shaky1105 said:Marcon said:Sounds as if you might not have a personal tax account? If not, setting one up could be useful: https://www.gov.uk/personal-tax-account0
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Is it down to me to inform HMRC if not working? I presume if I stop work next week and had no intention of doing paid employment again, the only way they'll know that is if I tell them.0
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eastcorkram said:Is it down to me to inform HMRC if not working? I presume if I stop work next week and had no intention of doing paid employment again, the only way they'll know that is if I tell them.
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