Adjustment to rate band

Oldmoondog

I wonder if you can help?  I have three pensions. One Military, one Private and one HMG.
The Private pension is taxed at basic rate, before I receive it.
My recent notification from HMG calculate the total amount of pensions (3) places me in the higher tax bracket and included in that amount, is the private pension BEFORE tax. Therefore to my mind I am being taxed twice?  In addition they have included a figure under the title Adjustment to Rate Band which I have never had before but reduces my tax free amount and wonder what it is referring to?

DE_612183

You should check your personal tax account - when you talk about the personal pension - who is providing this?

I'd work on the basis of adding all three up, taking off the personal allowance and then looking at what tax you need to pay at 20% and 40% and see if that's what's happening - with multiple pensions they sort of get treated as a whole rather than individually.

If you can post up some figures that might help.

p00hsticks

HMRC will use the gross (before tax) amounts to work out how much tax in total you need to pay.  

molerat

Your total income makes you liable to some higher rate tax but no single source is enough to collect any higher rate tax so they reduce your allowance with a rate band adjustment to collect that additional amount.  You need to enure your tax account is showing the correct estimated incomes for all sources.