Personal allowance adjustment

fly-catchers

Last year I started to get my State Pension at the start of the year. When the new tax year started 24/25 they adjusted my personal allowance to allow for the state pension. But they also said I had underpaid the previous year by £200. So would reduce my personal allowance further to recover this. I have just had notification that I paid the correct amount of tax for 23/24. That adds up to the amounts I had paid each month from my pension. So does that mean I was not underpaying by the £200 they originally said. Or did they allow for that as well? If they do refund any tax do they credit the amount back to you or adjust the personal allowance code accordingly? 

p00hsticks

It's difficult to comment without seeing the actual figures. 

Remember that the State Pension is most-commonly paid four-weekly (never monthly, sometimes weekly or fortnightly if chosen) and, as often comes up on these boards,  tax due is calculated on when you become entitled to it, not when it it is actually paid. 

Marcon

fly-catchers said:

Last year I started to get my State Pension at the start of the year. When the new tax year started 24/25 they adjusted my personal allowance to allow for the state pension. But they also said I had underpaid the previous year by £200. So would reduce my personal allowance further to recover this. I have just had notification that I paid the correct amount of tax for 23/24. That adds up to the amounts I had paid each month from my pension. So does that mean I was not underpaying by the £200 they originally said. Or did they allow for that as well? If they do refund any tax do they credit the amount back to you or adjust the personal allowance code accordingly? 

Have you looked at your personal tax account? https://www.gov.uk/personal-tax-account