HMRC Tax Allowance

[chiefmegawatty]

I thought the income tax threshold was over £9000 per year, but HMRC have proved me wrong. The only income I have if from private pension which consists of two pensions that add up to £7,520 per year.

I see from my recently received P60 that HMRC are deducting tax from my pension.

Is there a lower tax allowance / threshold for people on low private pensions?

I assume there must be otherwise HMRC wouldn't deduct anything.

 

Around four years ago I was living on a pension of £4.500 per year and HMRC decided to deduct 40% of my small pension and allocated me a tax code of zero !! This resulted in me having just £51 per week to live on and pay my bills for several months.

 

I assume that HMRC have a serious hate of people living on small private pensions

and attack them as much as possible.

I always assumed that working full time for decades, paying loads of tax and national insurance, not claiming benefits and living on a private pension would put me in the Governments good books, but obviously not!

I have bought my house outright so I don't claim any housing benefit but I seem to be treated like trash by the HMRC and the Government.

[blondebubbles]

First of all, it is your pension provider that deducts the tax, not HMRC. Sometimes they can do this incorrectly.

 

What is your tax code for the pension you have paid tax on?

[chiefmegawatty]

First of all, it is your pension provider that deducts the tax, not HMRC. Sometimes they can do this incorrectly.

 

What is your tax code for the pension you have paid tax on?

 

252T is the tax code for the pension I have been taxed on. The pension is £2576 per year. OK I assume I am over the tax threshold and should be taxed. However my total pensions are less than the normal tax threshold. HMRC know this so they are deliberately punishing poor people. This pension is a civil service pension and HMRC are civil service therefore my pension provider can't get it wrong as they are both the same thing.

They are both the civil service.......or are they?

[blondebubbles]

Civil service is more than just HMRC but either way they are the same as any other employer/pension provider.

 

Look there is no need to go on a rant. It is easily fixed and not the end of the world. Mistakes happen. No one is out to get you. They don't have a list of people who they think "let's go and wind them up"

 

Your personal allowance on that pension is too low. The personal allowance on that code is £2520, you earned £2570 so tax would automatically be deducted.

 

By my calculation you would pay £9.60 in tax on that code.

 

Is your other code 692L or something similar? This would make a personal allowance of £6920 to take you to a total allowance of £9440.

 

Call HMRC, ask for a rebate for 13/14 and ask for your tax codes to be split more evenly between each pension. Personal allowance is £10,000 this year so ask for a £7000/£3000 split if the amounts are likely to be the same again.

[chiefmegawatty]

Civil service is more than just HMRC but either way they are the same as any other employer/pension provider.

 

Look there is no need to go on a rant. It is easily fixed and not the end of the world. Mistakes happen. No one is out to get you. They don't have a list of people who they think "let's go and wind them up"

 

Your personal allowance on that pension is too low. The personal allowance on that code is £2520, you earned £2570 so tax would automatically be deducted.

 

By my calculation you would pay £9.60 in tax on that code.

 

Is your other code 692L or something similar? This would make a personal allowance of £6920 to take you to a total allowance of £9440.

 

Call HMRC, ask for a rebate for 13/14 and ask for your tax codes to be split more evenly between each pension. Personal allowance is £10,000 this year so ask for a £7000/£3000 split if the amounts are likely to be the same again.

 

HMRC are fully aware of my two pensions that don't add up to the income tax thresold of £9440. Therefore they are obviously punishing poor people in order to protect bankers earning billions of pounds and avoiding tax. I cannot understand why I should contact HMRC when they have proved that they are hell bent on taxing poor people. They would obviously ignore me and probably take all my pension in tax. Please learn to understand that Tories hate people who aren't worth billions of pounds. They class ordinary house owning people as worhhless brain dead skum.

[f16]

I think "IF" you follow advice from "blondebubbles" Post #4. (Good advice)

You will end up with a rebate. ....

Up to you. It's your money !!! your call.

Ignore advice if you want.

[ims21]

I cannot understand why I should contact HMRC when they have proved that they are hell bent on taxing poor people.

 

In which case the answer is to do nothing and leave things as they are.

[goodatresearch]

Your being very silly. This is obviously a mistake and not a personal vendetta. Write to your pension provider and tax office and enclose evidence of gross income and ask what's going on.

[blondebubbles]

HMRC are fully aware of my two pensions that don't add up to the income tax thresold of £9440. Therefore they are obviously punishing poor people in order to protect bankers earning billions of pounds and avoiding tax. I cannot understand why I should contact HMRC when they have proved that they are hell bent on taxing poor people. They would obviously ignore me and probably take all my pension in tax. Please learn to understand that Tories hate people who aren't worth billions of pounds. They class ordinary house owning people as worhhless brain dead skum.

 

Stop wasting peoples time asking for help you have no intention of taking. There is no need to be rude to the people on here.

 

At no point have I denied that they know you have 2 pensions. Obviously they know because they have separated your personal allowance between the two, it's just too low in one and too high in the other. It is easily resolved but if you don't want to bother then go moan about it to someone who cares, not on here.

 

Don't call them if you don't want to. It's up to you. It will automatically be reconciled in the next few months anyways.

[goodatresearch]

HMRC frequently get it wrong when someone has more than one pension, especially when the person is not working. That's why you have to be proactive by checking everything and querying anything incorrect. At the end of the tax year, your pension providers will have provided you with P60s setting out your total pension before tax, and the amount of tax deducted. Gather them all together for each year you have paid to much tax, send copies in with a covering letter ( by recorded delivery) and it will be sorted for you.

 

It may also be a good idea to call them first, politely explain their mistake, and even if they say they'll sort it, still write also so you have a paper trail.

[chiefmegawatty]

Stop wasting peoples time asking for help you have no intention of taking. There is no need to be rude to the people on here.

 

At no point have I denied that they know you have 2 pensions. Obviously they know because they have separated your personal allowance between the two, it's just too low in one and too high in the other. It is easily resolved but if you don't want to bother then go moan about it to someone who cares, not on here.

 

Don't call them if you don't want to. It's up to you. It will automatically be reconciled in the next few months anyways.

 

Who exactly have I been rude to? Please post a list of members I have been personally rude to. You have accused me of being a time waster, how rude is that?

I haven't accused anyone on this group of anything. However, if you know otherwise please provide evidence to support your accusation.

I can't see why I should inform HMRC of their mistakes. Surely it's their job not to make mistakes and not expect private pensioners to put them right. You seem to think that it's up to me to tell HMRC how to do their jobs properly. Well I think it's up to them to become competent at doing their jobs and NOT up to me to help them become competent. 18 years ago when I was working with digital radio design I didn't need to contact HMRC to make me competent in my complex job. Therefore why do I have to contact HMRC to make them competent in a simple job that only requires simple arithmetic? I was using calculus, boolean algebra and complex analysis with my job and you accuse me of being a time waster?

Cheers mate, thanks a lot, have a nice day. I assume your HND pass grade is better then mine.

[goodatresearch]

I suggest that if you don't want your money back you just put up with it and don't inform your tax office. Hardly common sense but its your choice.

[goodatresearch]

I've just received an email with the posters response to my post at #12. For some reason its not on the forum yet. However its just the usual rant and basically, why should he contact them as their to thick to add up and you can't educate pork (his words not mine).

 

Although I have never worked in this general area, I've successfully helped my partner on more that one ocassion with tax mistakes and I've helped friends and relatives also. In all this time I've never seen anyone make the ridiculous stand the poster is making. I'm beginning to think its a wind up.

[ims21]

This thread has run its course I think.

 

The OP has been given choices, a) contact HMRC and get things resolved or b) do nothing and leave things as they are.

 

It is up to the OP now as to which route they take.

 

Thread closed