Income tax put into the wrong year

Catsandrabbits

Hi there,

Has anyone had any luck with getting HMRC to change the year a lump sum was paid into.

My father passed away and so I received a lump sum payment from his pension provider. They paid this into my bank account on the 1st April 2026, so last tax year. He was over 75 so income tax is relevant. Anyway the pension provider put the date on the P45 to HMRC as 24th April, so HMRC have placed the payment in this tax year. I’m currently pregnant and so the tax year might make quite a difference.
I rung HMRC and they said to ask the pension provider for a letter stating when the money was paid and to send it to them, which I did. They sent a letter back saying they needed to be told directly by the pension provider. So I asked the pension provider to do this and they replied saying that they’re unable to report on tax years once they’ve passed.
Any help!?
Thanks,

Woodstok2000

Ask them to report on this tax year and confirm in writing that no payments have been made to you after 05 April 2026.

Isthisforreal99

Is it actually going to make much of a difference to your tax. Unless it takes you into the higher rate tax bracket if included as this year? What are your estimated earnings for this year?

sheramber

You say the tax year may make a difference.

Woukd it not be better work out whether it Woukd be beneficial to have it taxed in 25/26?

What was your gross taxable income and tax paid for 25/26?

What is your expected gross taxable income for 26/27?

Exodi

Catsandrabbits

Anyway the pension provider put the date on the P45 to HMRC as 24th April, so HMRC have placed the payment in this tax year. I’m currently pregnant and so the tax year might make quite a difference.

I didn't really understand this part? If you're currently pregnant, so likely to be giving birth and on maternity leave (likely reducing your pay) in this tax year, surely it's in your interests for it to be considered in this tax year, compared the previous where you were likely working full time?

Assuming the lump sum put you over a tax threshold - have you checked this?

It could be a whole load of work for no benefit (or potentially even being worse off).

Really you need to look at your P60 for last year, compare it your estimated income for this year and calculate which year it would be more advantageous (if either).

Catsandrabbits

Hi all, it was a large lump sum and so has pushed my earnings up to the point where I lose the £12500 tax allowance. So I’m currently also on an emergency tax code. I’m a postie, so my actual income is £33 ish. I’ll be on full pay for maternity leave until April. As for its impact on being in this tax year I’m thinking more about how it will affect the funded hours for nursery and child benefit.

Exodi

https://forums.moneysavingexpert.com/discussion/comment/82154647#Comment_82154647

It's hard to answer without knowing the due date or the amount, but if were to work backwards from what you said, you earn £33k and this lump sum causes you to lose your personal allowance, therefore we can conclude the lump sum is at least £92,140. If it will cause you to lose your personal allowance in this year, where you may expect to earn less than last year due to maternity (I'm just guessing as you haven't said the due date or what you plan to do for maternity), then it seems all but guaranteed you would lose your personal allowance regardless of the year the lump sum was attributed to.

As for funded hours for nursery - I'm not sure how this could be an issue?

You've said you're currently pregnant, even if we take worse case scenario and you happened to be due to give birth this week, that's only 6 months till the end of the tax year. Not only do the vast majority of people not put their children in the nursery immediately after their born (most are around 9-12 months I believe), but most importantly you should be aware that funded hours don't apply until the child is at least 9 months old, meaning it is impossible for you to lose them as you wouldn't have them this tax year to begin with.

Child Benefit is relevant, you would still be paid it however it would be clawed back through the HICBC. This means you'd be £27.05 multiplied by however many weeks there are between the date of birth and the end of the tax year worse off. Again we don't know your due date, if due next week you would lose about ~£719, but this is obviously worse case, if due in March or April then it is significantly less.

Only you know the details so could work out if or how much this might effect you. But I'd just focus on the child benefit aspect as I suspect the other two points (personal allowance + nursery) are likely irrelevant in this context.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82154647#Comment_82154647

A 'large lump sum' means different things to different people. If you want informed advice then we need the amount.