The time has come!

katejo

Tomorrow is my last working day in my current post after a very very long time 😊and then, on Friday, I have my farewell section lunch and official celebration. Fortunately no problems with claiming my pension from SAUL. Lump sum is due early May and first pension payment later in the month. I have things organised for the first couple of weeks including a group solos trip to Spain and a new book club meeting to try. After that I have several ideas including walks and generally improving my fitness. Hopefully more holidays too but I am a bit cautious about booking flights at the moment. Should I expect errors in my tax on my 1st pension payment solely caused by the transition from salary to pension? I am only a standard rate taxpayer and don't need to complete annual tax returns.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6666102/the-time-has-come

What is your current tax code at your employment? The emergency code 1257L?

katejo

https://forums.moneysavingexpert.com/discussion/comment/81980547#Comment_81980547

My last code for April was 1154L/0. It's below 1257L because my savings interest in the last tax year was a little over the £1000 allowed but I don't know what the /0 or /1 means. My code on my previous monthly salary statement was 1085L/1

Dazed_and_C0nfused

/0 and /1 indicate if the code is being used on a cumulative (/0) or non cumulative (/1) basis.

Chances are the pension company will use 1257L (non-cumulative) for the first payment and HMRC will then issue an updated code, possibly not until they have your final pay details from your current employer though.

QrizB

Congratulations katejo!

It's always good to see a forum regular retire; it means there's hope for the rest of us too 😆

Albermarle

https://forums.moneysavingexpert.com/discussion/6666102/the-time-has-come

From my limited experience any change in taxable income source can cause problems with tax.

When I last changed employer, HMRC added both annual salaries together and taxed me accordingly. Same happened to a family member.

So you need to be on the lookout and give them a call if there is anything amiss.

MallyGirl

I was looking at my personal tax account yesterday to see if there was a way of providing up to date info since I stopped working last year and then just took 3 small pots via HL. It was pretty shambolic but there was no way to provide updates until the tax has been calculated. They had applied a small BIK amount to HL then added medical insurance as a further benefit (not sure what they were thinking there) then removed the medical. No sign of updated info from the employer so that was still showing a full year of the medical benefit as well. I figured I'll just wait till they do the final tax calculation and then check it carefully

saucer

Good on you katejo. You’re retiring at a lovely time of the year. I’m on the last last lap now with retirement in September. I can’t wait.

katejo

https://forums.moneysavingexpert.com/discussion/comment/81982006#Comment_81982006

I deliberately chose this time of year. I pencilled it in on my calendar a year ago but didn't finally decide until the beginning of this year when 2 colleagues left. Good luck for your final months.