Taxation Trouble

[Jim_P_Pulfrew]

http://www.telegraph.co.uk/finance/...tiple-incomes-at-risk-of-shock-tax-bills.html

Might be worth checking your coding?

Jimps

 

[propersplitbrainme]

Yeah, made absolutely sure this was sorted when I left. It has caught a few out.

Love the way we are personally responsible for spotting other people's errors.

 

[Teh Wal]

Oh great! Just when I thought they'd got to grips with my working situation... which has taken them 6 friggin' years even though I've been doing exactly the same civvie job for 7 years!

 

[Ex-Bay]

Yeah, made absolutely sure this was sorted when I left. It has caught a few out.

Love the way we are personally responsible for spotting other people's errors.

Being retired and skint, I don;t have to bother, but
I really, HATE the way the public is responsible for back tax.

::

 

[needsabiggerfuse]

Plug your figures into this LINKY BIT It should give you a pretty good indication of what your dues are.

 

[FOMz]

I've been having trouble with this since I left 4 1/2 years ago.

HMRC automaticly put my pensions as my first income and my wage as my second, rather than the oher way around. Despite me calling them a twice a year to check my tax as I thought I was underpaying, I was kept being told everything was correct... until last year...

I got someone one the phone who knew what he was talking about and lo and behold... I was told I had underpaid tax for the last 3 years. Despite me constantly phoning them and checking, and being told its correct... the error is on my part according to their rules. I am now paying a vast extra sum every month.

Also guys... just as a word of warning... HMRC have been told to agressively chase up underpayments by the end of the year. Nothing to do with an upcoming election and the ConDems being able to claim they have managed to claim £MXXXXXX of owed tax from people. please note: from people.. not massive corporations who routinely dodge tax payments whilst making political donations.

 

[busby1971]

Quite few people would have known they were underpaying but choose to keep quiet, the longer is left the worse it gets.

It's not complicated, allocate your tax allowance to your pension, then there are only two possible outcomes.

1. You get a pension of less than your allowance, you will have a smaller tax code for your regular salary.

2. Your pension is more than your tax code or is the same as your tax code. You will have a zero or negative tax code depending on how much over your pension is, if you get any benefits that lower your code or you earn over 100k.

If on the other hand you faff around splitting your codes here and there then you've got to expect a bit of passion along the way.

 

[tubbyj]

Working and receiving pension

Working and receiving pension

Hi All,
unfortunately I fell foul of the tax man, I declared my pension to my new employer, as you should do, but then assumed that was the end of it, 2 yrs later turns out somebody at my companys HR dept or HMRC double allocated my tax allowance, result I got a tax bill for 4K, so when you get out of the mob and get a job make sure that you are paying the right tax, or you will be billed as the TAX man wants his pound of flesh whether its your fault or not!!!

 

[vim_fuego]

Same here...mine got sorted last year via paying an accountant to look it all over and advise me. They only cost around £25 for the hour you'll need with them to avoid all this...

 

[MingMong]

In the last 5 years since leaving the mob, they still haven't managed to get my tax right, despite regular phone calls to HMRC.
I know what needs to be done (i think), but getting somebody to do it seems to be mission impossible. My tax code seems to have reduced every year as HMRC try to recoup underpaid tax. I wouldn't be surprised if the tax code soon becomes a negative number.

 

[stereolab]

Hi All,
unfortunately I fell foul of the tax man, I declared my pension to my new employer, as you should do, but then assumed that was the end of it, 2 yrs later turns out somebody at my companys HR dept or HMRC double allocated my tax allowance, result I got a tax bill for 4K, so when you get out of the mob and get a job make sure that you are paying the right tax, or you will be billed as the TAX man wants his pound of flesh whether its your fault or not!!!

Their is no need to advise a new employer that you are in receipt of an MOD pension, you do however have to tick the relevant box on the P form when you are commencing your new employment. The new accounts office will process this according to how you tick the box. Did you not notice that you received P60s which both showed a tax code, rather than one with "BR". By the way you write, I would assume that someone somewhere at HMRC was asked to allocate your tax code to your pension, but this would not have been your new employer.

I did all this paperwork years ago, had no problems with any of the departments.

I have just this week received a demand, for £1.00, which I settled by a BACS transfer. It cost more in postage to Thailand, than the £1 requested.

 

[fileeth]

Just ring up HRMC direct and get them to fix/set up your tax codes against whichever incomes you want it set against.
If you are an earner in the high tax band before your pension is taken into account the simplest thing to do is to get your pension tax code set at the higher tax rate so your tax allowance is applied to your normal wage packet thus giving greater visibility to yourself.

 

[Odie]

Due to overtime, which pushes me into the higher bracket, being unpredictable during the year, to collect the outstanding tax my tax-free allowance has been slashed next year from £10,600 down to £2,060.

 

[I Look Like Kevin Costner]

Exactly the same with me, with the OT I have earned this year, tax code for the pension has dropped to 4300.