DB Pension PCLS Late may incur losses

Pat38493

DRS1 said:

Yes I guess they will use the emergency code (unless you have given them a P45?).  They will only use tax codes supplied by HMRC.

If you do self assessment that may take care of any extra tax you owe but I suspect you are right that HMRC will probably adjust your tax code to collect underpaid tax - but perhaps not until 26/7?

I guess I'll just have to update the income stream when it appears on the HMRC portal and let things self regularise over time.

I actually don't know for sure when I am stopping work yet so I don't know what my taxable income will be in 25/26 anyway.

Pat38493

DRS1 said:

Yes I guess they will use the emergency code (unless you have given them a P45?).  They will only use tax codes supplied by HMRC.

If you do self assessment that may take care of any extra tax you owe but I suspect you are right that HMRC will probably adjust your tax code to collect underpaid tax - but perhaps not until 26/7?

Just to update on this - I received a notification from HMRC that they have set a tax code of D0 40% on all income for my future pension stream (which is correct, at least for the small amount which will fall in 24/25).

I guess this must be part of the new changes to the system that were announced by HMRC recently because I haven't actually received any payments yet.

(I am planning to stop work in 25/26 so I will have to update my expected income streams after April 6th to get the tax codes fixed up again).