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Tax Code Change(well 2 actually) After Cashing In A Small Pension 1275LX And D0X?
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ReflectionsinaFIAT
Posts: 29 Forumite

in Cutting tax
I've just cashed in a small Pension worth £3000 ish. I have the HMRC App and have just noticed that my Tax Code has changed 'because I have a Private Pension' and 'I have 2 Income Sources'
Do they think I'm getting a monthly pension?(I'm not, it was a one off).
Have I been overcharged?
How do I claim it back if I have?
Ta Mike.
Do they think I'm getting a monthly pension?(I'm not, it was a one off).
Have I been overcharged?
How do I claim it back if I have?
Ta Mike.
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Comments
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ReflectionsinaFIAT said:I've just cashed in a small Pension worth £3000 ish. I have the HMRC App and have just noticed that my Tax Code has changed 'because I have a Private Pension' and 'I have 2 Income Sources'
Do they think I'm getting a monthly pension?(I'm not, it was a one off).
Have I been overcharged?
How do I claim it back if I have?
Ta Mike.0 -
Well I didn't tell them! I presume the Pension Company grassed me up!
I paid(allegedly) 20% tax on what was left after my quarter tax free
under the 'small pots' rules.0 -
As you have the app, wait 35 days then go into the PAYE section and swipe up to the 'Add missing income' section. I know it's not income but you can use the text box to tell them what you have told us about it being a one off. Note before you start it does say to allow 35 days for pension changes.
They may even ring you up to discuss the information you have given them (in my case I submitted info in January and I was called within a week).0 -
The pension company report all taxable payments the same as an employer does.
Whether the tax deducted is correct will depend on your total taxable income for 24/25.
It may be too much, or too little or the right amount.0 -
If the D0X code has been applied to the pension, then you can just ignore it as you aren't going to be getting any more payments so the tax code is irrelevant.0
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ReflectionsinaFIAT said:Well I didn't tell them! I presume the Pension Company grassed me up!
I paid(allegedly) 20% tax on what was left after my quarter tax free
under the 'small pots' rules.0 -
Just an update on this, I got another letter today saying my new tax code is now 1238L(was 1257L)
and BRX is replacing DOX. BRX means 20%(X means under review after 5th April) which I get but
why has my Allowance gone down from 1257 to 1238? (notes say 'we have included this adjustment
as you have more than one job or pension and we estimate some of your income is taxable at a higher rate)
0 -
It will be because the total across both sources of income is just into the 40% band.
But because neither of their own is 40% that adjustment is made to collect a bit extra.
A sensible thing to do is to check your Personal Tax Account and make sure HMRC are using as accurate as possible estimates for each source. It is the expected P60 pay figure which is important.
That helps you avoid under or overpaying tax.1 -
I tried to tell them via the App but there is no text box, I just sent it anyway as 'unearned income'.0
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