My second annuity payment due is lower than expected

Mark6701

Hi all,

I had a small pension and decided to get an annuity with L&G.

I received the first payment yesterday with the amount I was expecting of £337.

Anyway, the next amount due to be paid is showing online as £283 which is £53 less than the first payment. It also says it's estimated.

I also have another small pension payment each month of £264, but both combined pension payments only amount to 7k per annum and looking on my HMRC app it says I won't have any tax to pay even though I got a new tax code of 80T two days ago.

As part of my paperwork it says I'll get £337 per month for the first year so I expected my next payment amount to say the same in my L&G Portal.

I just therefore wondered why my next payment due is not only showing as £53 less but saying estimated.

Is this normal or something I should be worried about?

If I've made a mistake I'd like to know before the cooling off period ends.

Isthisforreal99

It's the monthly tax due on a tax code of 80T. 80T means £800 per annum tax free or £66 per month. Whether 80T is the correct tax code is a different matter but you are still getting £337 per month gross, before tax.

Suggest you update your personal tax account with accurate estimates from each source.

Mark6701

I thought that this was all worked out for you when you claimed a pension and they sorted out any tax. My two pension payments amount to £602 per month so that's within the £12570 limit and they are currently now my only income.

With regards to your last line what exactly is a personal tax account and what estimates would I need to get and where from?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81870828#Comment_81870828

Well you need to do as I suggested or phone HMRC

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/81870828#Comment_81870828

When you say they are your only income, has that been the case since April 2025?

Mark6701

https://forums.moneysavingexpert.com/discussion/comment/81870834#Comment_81870834

I was receiving rental income but that stopped in September. My total earnings so far this year amount to £4800 since April 2025, hence why I've started cashing in on my small pensions.

Woodstok2000

You'll need to phone hmrc yo see what's going on, sounds like a miscalculation somewhere.

af1963

You haven't yet filled in a tax return for the rental income, so HMRC won't know that it stopped in September and may expect you to get a similar amount as last year.

35har1old

https://forums.moneysavingexpert.com/discussion/comment/81870864#Comment_81870864

Sounds like he hasn't filed self assessments before

Marcon

https://forums.moneysavingexpert.com/discussion/6653901/my-second-annuity-payment-due-is-lower-than-expected

It's normal and nothing to worry about. Your gross payment from your annuity (ie the pre-tax amount) hasn't changed, but given you say you received a code of 80T two days ago, your tax code has changed since the first payment was made to you.

A tax code of 80T means you only get just over £66 a month tax free. The 'T' means temporary. That is why your annuity provider is showing your forthcoming payment as an estimate, because they recognise they may be sent a different tax code by HMRC between now and the time the payment is made to you.

If you set up a personal tax account, and have a look at the information on that, it'll be more helpful than people here trying to guess what's going on: https://www.gov.uk/personal-tax-account

af1963

https://forums.moneysavingexpert.com/discussion/comment/81870887#Comment_81870887

Unless the rental income and profit is really low, having property income is one of the triggers for needing to do a tax return.