Tax deducted from Early retirement incentivisation scheme

chrisbur

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

You can use this assuming no taxable income and planning not to work for rest of year.  If you change your mind and do a bit of work then you might end up owing some tax but that is better than waiting until HMRC get round to sorting it all out next tax year.

Mikey481

chrisbur said:

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

You can use this assuming no taxable income and planning not to work for rest of year.  If you change your mind and do a bit of work then you might end up owing some tax but that is better than waiting until HMRC get round to sorting it all out next tax year.

Have had a letter for HMRC regarding my request for refund as suggested by previous post stating they cannot process as i am in receipt of pension income (from another employer not the one i have just left).
Is this something i can challenge or am i wasting my time ?
The letter says i will have to wait until April 5th 2026 when my tax position for 2025/2026 is finalised.
Surely its ridiculous i get taxed on my pension which will be tax wise up to date in April 2026.
Of course even then a refund probably won't be until late 2026 or even 2027 based on their recent performance of sorting out the previous years tax position.
Any thoughts very welcome

chrisbur

There used to be an arrangement (Details in old E13 book) which covered someone who had two jobs and left one of them.  No idea if this still exists and not quite the same circumstances as yours but might be worth querying with HMRC to see if could be applied.  Might give some refund month by month rather than next year, if HMRC was to merge pay and tax details for lump sum and pension being paid.

https://webarchive.nationalarchives.gov.uk/ukgwa/20140206145701/http://www.hmrc.gov.uk/helpsheets/e13rti.pdf

Page 39

"Existing employee gives you a form P45 If an existing employee gives you a form P45 from a second job they have just left you should tell them to send the P45 Part 3 to: HM Revenue & Customs Regional Post Room St Mungo’s Rd CUMBERNAULD G67 1YZ We will review the tax code and issue an amended one if appropriate"

Sarahspangles

chrisbur said:

There used to be an arrangement (Details in old E13 book) which covered someone who had two jobs and left one of them.  No idea if this still exists and not quite the same circumstances as yours but might be worth querying with HMRC to see if could be applied.  Might give some refund month by month rather than next year, if HMRC was to merge pay and tax details for lump sum and pension being paid.

https://webarchive.nationalarchives.gov.uk/ukgwa/20140206145701/http://www.hmrc.gov.uk/helpsheets/e13rti.pdf

Page 39

"Existing employee gives you a form P45 If an existing employee gives you a form P45 from a second job they have just left you should tell them to send the P45 Part 3 to: HM Revenue & Customs Regional Post Room St Mungo’s Rd CUMBERNAULD G67 1YZ We will review the tax code and issue an amended one if appropriate"

I think this can now be done online, I recently amended my online tax account to confirm I’ve ended a contract, and I got a letter asking me to send the P45. I haven’t got round to actually doing it, but I assume there will be a scan and upload option.

Mikey481

Sarahspangles said:

chrisbur said:

There used to be an arrangement (Details in old E13 book) which covered someone who had two jobs and left one of them.  No idea if this still exists and not quite the same circumstances as yours but might be worth querying with HMRC to see if could be applied.  Might give some refund month by month rather than next year, if HMRC was to merge pay and tax details for lump sum and pension being paid.

https://webarchive.nationalarchives.gov.uk/ukgwa/20140206145701/http://www.hmrc.gov.uk/helpsheets/e13rti.pdf

Page 39

"Existing employee gives you a form P45 If an existing employee gives you a form P45 from a second job they have just left you should tell them to send the P45 Part 3 to: HM Revenue & Customs Regional Post Room St Mungo’s Rd CUMBERNAULD G67 1YZ We will review the tax code and issue an amended one if appropriate"

I think this can now be done online, I recently amended my online tax account to confirm I’ve ended a contract, and I got a letter asking me to send the P45. I haven’t got round to actually doing it, but I assume there will be a scan and upload option.

Thanks both for those potential routes I will explore these options.
HMRC have to be the most frustrating organisation to deal with.
They do not seem able to apply any logic or common sense to problems that people encounter every day.
I don’t like the bias when refunds to tax payers are dragged out for as long as possible but when you owe them a £1 they demand it yesterday !!!

Dazed_and_C0nfused

Mikey481 said:

Sarahspangles said:

chrisbur said:

There used to be an arrangement (Details in old E13 book) which covered someone who had two jobs and left one of them.  No idea if this still exists and not quite the same circumstances as yours but might be worth querying with HMRC to see if could be applied.  Might give some refund month by month rather than next year, if HMRC was to merge pay and tax details for lump sum and pension being paid.

https://webarchive.nationalarchives.gov.uk/ukgwa/20140206145701/http://www.hmrc.gov.uk/helpsheets/e13rti.pdf

Page 39

"Existing employee gives you a form P45 If an existing employee gives you a form P45 from a second job they have just left you should tell them to send the P45 Part 3 to: HM Revenue & Customs Regional Post Room St Mungo’s Rd CUMBERNAULD G67 1YZ We will review the tax code and issue an amended one if appropriate"

I think this can now be done online, I recently amended my online tax account to confirm I’ve ended a contract, and I got a letter asking me to send the P45. I haven’t got round to actually doing it, but I assume there will be a scan and upload option.

Thanks both for those potential routes I will explore these options.
HMRC have to be the most frustrating organisation to deal with.
They do not seem able to apply any logic or common sense to problems that people encounter every day.
I don’t like the bias when refunds to tax payers are dragged out for as long as possible but when you owe them a £1 they demand it yesterday !!!

To be fair, you are imagining that.  If you owed tax for the current tax year the earliest you would normally have to pay it would be 31 January.  In 2027.

This thread does seem to be like teasing things out bit by bit, what ongoing sources of income do you actually have?

Mikey481

Dazed_and_C0nfused said:

Mikey481 said:

Sarahspangles said:

chrisbur said:

There used to be an arrangement (Details in old E13 book) which covered someone who had two jobs and left one of them.  No idea if this still exists and not quite the same circumstances as yours but might be worth querying with HMRC to see if could be applied.  Might give some refund month by month rather than next year, if HMRC was to merge pay and tax details for lump sum and pension being paid.

https://webarchive.nationalarchives.gov.uk/ukgwa/20140206145701/http://www.hmrc.gov.uk/helpsheets/e13rti.pdf

Page 39

"Existing employee gives you a form P45 If an existing employee gives you a form P45 from a second job they have just left you should tell them to send the P45 Part 3 to: HM Revenue & Customs Regional Post Room St Mungo’s Rd CUMBERNAULD G67 1YZ We will review the tax code and issue an amended one if appropriate"

I think this can now be done online, I recently amended my online tax account to confirm I’ve ended a contract, and I got a letter asking me to send the P45. I haven’t got round to actually doing it, but I assume there will be a scan and upload option.

Thanks both for those potential routes I will explore these options.
HMRC have to be the most frustrating organisation to deal with.
They do not seem able to apply any logic or common sense to problems that people encounter every day.
I don’t like the bias when refunds to tax payers are dragged out for as long as possible but when you owe them a £1 they demand it yesterday !!!

To be fair, you are imagining that.  If you owed tax for the current tax year the earliest you would normally have to pay it would be 31 January.  In 2027.

This thread does seem to be like teasing things out bit by bit, what ongoing sources of income do you actually have?

Apologies I assumed that people would spot that my comment was thinly veiled sarcasm.
DB pension in payment from a previous employer which has tax deducted at source.
My online record shows that the employer that paid the incentive payment ceased to be my employer in April
Thats the frustration and the fact that when you speak to a human they are reading from a script without real knowledge of the system.
Thats what you get for £12.21 I guess

Dazed_and_C0nfused

Mikey481 said:

Dazed_and_C0nfused said:

Mikey481 said:

Sarahspangles said:

chrisbur said:

There used to be an arrangement (Details in old E13 book) which covered someone who had two jobs and left one of them.  No idea if this still exists and not quite the same circumstances as yours but might be worth querying with HMRC to see if could be applied.  Might give some refund month by month rather than next year, if HMRC was to merge pay and tax details for lump sum and pension being paid.

https://webarchive.nationalarchives.gov.uk/ukgwa/20140206145701/http://www.hmrc.gov.uk/helpsheets/e13rti.pdf

Page 39

"Existing employee gives you a form P45 If an existing employee gives you a form P45 from a second job they have just left you should tell them to send the P45 Part 3 to: HM Revenue & Customs Regional Post Room St Mungo’s Rd CUMBERNAULD G67 1YZ We will review the tax code and issue an amended one if appropriate"

I think this can now be done online, I recently amended my online tax account to confirm I’ve ended a contract, and I got a letter asking me to send the P45. I haven’t got round to actually doing it, but I assume there will be a scan and upload option.

Thanks both for those potential routes I will explore these options.
HMRC have to be the most frustrating organisation to deal with.
They do not seem able to apply any logic or common sense to problems that people encounter every day.
I don’t like the bias when refunds to tax payers are dragged out for as long as possible but when you owe them a £1 they demand it yesterday !!!

To be fair, you are imagining that.  If you owed tax for the current tax year the earliest you would normally have to pay it would be 31 January.  In 2027.

This thread does seem to be like teasing things out bit by bit, what ongoing sources of income do you actually have?

Apologies I assumed that people would spot that my comment was thinly veiled sarcasm.
DB pension in payment from a previous employer which has tax deducted at source.
My online record shows that the employer that paid the incentive payment ceased to be my employer in April
Thats the frustration and the fact that when you speak to a human they are reading from a script without real knowledge of the system.
Thats what you get for £12.21 I guess

Have you asked if HMRC will include the pay and tax details from the ceased employment in a new tax code for the DB pension?

It doesn't need to be a different tax code, including the pay and tax details will mean your pension payer recalculates the tax due the next time they pay you and would automatically refund any excess tax deducted as part of running payroll on that next pension payment.

You need to be sure you have overpaid, when taking into account your pension to say month 3 of the tax year and the pay/tax from your ceased employment.

But it's a very simple way of getting the right tax paid by the end of the tax year.