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HMRX Tax on Government Pensions for full year when only started receiving pension 4 months ago
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Nomunnofun1 said:Cheshire_Lion said:TheSpectator said:A complete waste of time HMRC putting explanatory notes on the coding notices it seems.
This erroneous assumption not only contradicts HMRC's explanation, but has knock on implications for the next tax year when HMRC will want to claw back tax that simply isn't owed.0 -
Cheshire_Lion said:TheSpectator said:A complete waste of time HMRC putting explanatory notes on the coding notices it seems.
The explanatory note says "we know you won't receive the full amount (of State Pension) this year". Yet HMRC's estimate of my tax for the current tax year as stated in my personal tax account is based on the assumption that I will receive the full amount this year, even though I haven't. This erroneous assumption not only contradicts HMRC's explanation, but has knock on implications for the next tax year when HMRC will want to claw back tax that simply isn't owed.
I thus have every sympathy with the original poster, and the unnecessary stress caused by HMRC's unacceptably contradictory behaviour.
Including the annual amount of pension but issuing the new code on a non cumulative basis has been happening for time immemorial.
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye76086
Just because some people cannot understand what is happening doesn't mean it produces the wrong outcome.
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Cheshire_Lion said:TheSpectator said:Cheshire_Lion said:TheSpectator said:A complete waste of time HMRC putting explanatory notes on the coding notices it seems.
The explanatory note says "we know you won't receive the full amount (of State Pension) this year". Yet HMRC's estimate of my tax for the current tax year as stated in my personal tax account is based on the assumption that I will receive the full amount this year, even though I haven't. This erroneous assumption not only contradicts HMRC's explanation, but has knock on implications for the next tax year when HMRC will want to claw back tax that simply isn't owed.
I thus have every sympathy with the original poster, and the unnecessary stress caused by HMRC's unacceptably contradictory behaviour.
Quite simply, you are wrong.
You omitted the bolded section in your post but it seems that despite numerous people trying to explain it you will not get the difference between a cumulative and non-cumulative tax code.
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Dazed_and_C0nfused said:Cheshire_Lion said:TheSpectator said:A complete waste of time HMRC putting explanatory notes on the coding notices it seems.
The explanatory note says "we know you won't receive the full amount (of State Pension) this year". Yet HMRC's estimate of my tax for the current tax year as stated in my personal tax account is based on the assumption that I will receive the full amount this year, even though I haven't. This erroneous assumption not only contradicts HMRC's explanation, but has knock on implications for the next tax year when HMRC will want to claw back tax that simply isn't owed.
I thus have every sympathy with the original poster, and the unnecessary stress caused by HMRC's unacceptably contradictory behaviour.
Including the annual amount of pension but issuing the new code on a non cumulative basis has been happening for time immemorial.
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye76086
Just because some people cannot understand what is happening doesn't mean it produces the wrong outcome.0
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