HMRC Debt

bullinn1

jem16 said:

bullinn1 said:

jem16 said:

bullinn1 said:

First Paget 

What tax does are applied to each of your pensions? One of them isn’t being taxed at all which won’t help. Sounds like you need to speak to HMRC and get your tax codes worked out better to avoid this.

Thank you jem16 Is it the responsibility of the pension provider to ensure my tax codes are correct … I know absolutely nothing about tax coding and during an hour long conversation they offered little advice basically saying “pay up and expect a demand every year because we can’t code it out”.

No it’s not the pension provider’s responsibility. They will use the codes that HMRC gives them. It’s really between you and HMRC.

Five people over several days were really not very knowledgeable, appeared to want to get rid of me, one appered to be drunk and cut me off, many hours … I will try again with the further knowledge I’ve gleaned, thank you all, from this forum.

Dazed_and_C0nfused

bullinn1 said:

jem16 said:

bullinn1 said:

jem16 said:

bullinn1 said:

First Paget 

What tax does are applied to each of your pensions? One of them isn’t being taxed at all which won’t help. Sounds like you need to speak to HMRC and get your tax codes worked out better to avoid this.

Thank you jem16 Is it the responsibility of the pension provider to ensure my tax codes are correct … I know absolutely nothing about tax coding and during an hour long conversation they offered little advice basically saying “pay up and expect a demand every year because we can’t code it out”.

No it’s not the pension provider’s responsibility. They will use the codes that HMRC gives them. It’s really between you and HMRC.

Five people over several days were really not very knowledgeable, appeared to want to get rid of me, one appered to be drunk and cut me off, many hours … I will try again with the further knowledge I’ve gleaned, thank you all, from this forum.

HMRC or the pension company?

Sadly I suspect I can guess the answer.

Grumpy_chap

crv1963 said:

I do wonder if taxing pensioners small(ish) amounts is actually cost effective for HMRC? My mother has been sent a tax bill for £267 all off her state pension income- no private pensions. I think personally that HMRC will have to create some method of collecting the sums via deduction as more get dragged into the fiscal drag. Not every pensioner is in the position to fork out several hundred pounds.

I am not sure how a "not tax small amounts for pensioners" could be done without simply moving the threshold at which the small amount then arises and / or create a cliff edge.  Things also need to be equitable to non-pensioners.

Let's consider that the "too small to collect" threshold was set at tax due of no more than £100.  Is the outcome to effectively increase the personal allowance by £500?

What about an individual who then has a tax liability of £101?  Are they waived the first £100 so have to pay £1, which must also then be "too small to collect" so it can't work like this.  So this individual has an income £5 higher but suffers £101 more income tax.  That is not equitable either.

What is the "too small to collect" value?  The post I quoted seems to suggest £300 is "too small to collect", but the OP is at £670 as "too small to collect" (yet both values are simultaneous referenced as too much for a pensioner to have to fork out).

If the OP's £670 is "too small to collect" from a pensioner, how does that compare to a non-pensioner?  My income tax liability for 2023-24 was less than the OP's £670 but I have paid that amount due in full.  Can it be equitable that a pensioner is let off a "too small to collect" income tax liability but a younger, working person is not?

crv1963

Good point Grumpy_chap