Why is HMRC giving me a tax allowance for 26-27 for SIPP now 75

MarzipanCrumble

Says it all in the title really. Doesn't the Gov know that I cannot contribut AND get tax a;llowance once 75????

Not really expecting any comment.

Dazed_and_C0nfused

If that is in relation to your tax code they might have expected you to notify them when the contributions ended 🤔

drumtochty

The pension provider has your DOB.

I assume their computer system checks your DOB and if you are over 75 years old when you pay in the contribution. Your pension provider either refuses to accept the contribution or if it does accept the contribution, it does not add your contribution to it's running total of contribution for that month from all its clients who contibuted that month and who were under 75 years old.

MarzipanCrumble

OK - Yes the SIPP provider did recognise when I was 75 and stopped (cancelled) the DD in Jan (75th birthday). All good.

Got my Tax Assessment for 26-27 and there it is:

Personal Pension Relief 1440

Now is this retrospective (so yes, great, I am entitled, no need to worry) or is it a forecast for 26-27 - so I really need to tell them that they should know I am 75?

I hate tax - so complicated.

eskbanker

Got my Tax Assessment for 26-27 and there it is:

Personal Pension Relief 1440

What actual document is this, is it a coding notice perhaps, as they obviously can't assess actual tax liabilities in a future tax year?

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/81919154#Comment_81919154

Coding adjustments like that are effectively forecasts, trying to set the code so the correct amount of tax is collected dduring the year.