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Tax

Discussion in 'Retirement' started by elainerosebud, Nov 24, 2019.

  1. elainerosebud

    elainerosebud New commenter

    I recently retired in September and was surprised to have a new tax code which meant I didn't have to pay tax. Big mistake!!! I have just contacted the tax man and I owe 500 quid. I am sure no one out there is as dim as me but check your tax code.
     
  2. Sundaytrekker

    Sundaytrekker Star commenter

    Did you send HMRC your P45 so they knew what you’d earned this year so far?
     
    border_walker likes this.
  3. elainerosebud

    elainerosebud New commenter

    My employer did but the system acted first and reset me.
     
  4. Sundaytrekker

    Sundaytrekker Star commenter

    Mine took about three months to settle .
     
    border_walker and elainerosebud like this.
  5. Rott Weiler

    Rott Weiler Star commenter Forum guide

    Everything in HMRC has slowed to a crawl because of Brexit. So many staff have been taken off their normal work and assigned to the 'Brexit preparations' teams (I am reliably informed by insiders!). On some routine matters I deal with HMRC in the past I got a reply within 4 weeks. This year exactly the same correspondence took them 10 weeks to reply. I was also told by the DWP on a pensions query that "HMRC have an enormous backlog".
     
  6. elainerosebud

    elainerosebud New commenter

    Have to say the guy on the phone dealt with it really quickly. I am going to ring T P just to confirm.
     
  7. diddydave

    diddydave Established commenter

    Having filled in tax returns virtually every year I've been working I'd say the easiest, and most accurate, check is to add up all your income (before tax), take off the personal allowance and any pension contributions and work out the tax you actually owe.
     
  8. Treacle3

    Treacle3 New commenter

    Yes, I'm going to do that in April because since leaving teaching in August, I will have probably worked at 4 (maybe more) different PAYE jobs for anything from one day (General Election count assistant) to a few months. My tax code is all over the place atm as HMRC appear to assume each new job will continue until the end of the current tax year. I guess they have to assume that unless informed otherwise?
     
  9. border_walker

    border_walker Lead commenter

    I had a similar problem with some employers, concluded that it is the employer not "tax people", when ever I rang them it was sorted instantly.
     
  10. diddydave

    diddydave Established commenter

    For many years as well as teaching both my wife and I have been self-employed and had other income streams, most of the time we paid 'emergency' tax which meant that we got cheques from the tax authorities pretty quickly after completing the tax return in April - one thing we did learn was not to wait until April though to do the sums. By doing them in February we could see if we had money that would be in the higher tax bracket and could pump that into a pension fund.
     
    Prim and Treacle3 like this.
  11. Skeoch

    Skeoch Lead commenter

    Once you've registered for self assessment you can do quite a lot online, including for example telling the taxman your predicted income for the tax year from each employment. Tax codes then seem to be generated automagically.
     
    Treacle3 likes this.
  12. Master59

    Master59 New commenter

    I retired this summer and started receiving my pensions in September . I have another pension, from a different type of employment, I started to receive in April this year...I have not paid any tax on this pension. However, my TPS pension has had three tax code changes...and I have had a tax rebate of a few hundred quid. It’s settled down now. I’m guessing it won’t be until the new tax year when things are normalised. I think possibly because this tax year I’ve had a taxable income from April to August ....
     
    elainerosebud likes this.

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