UK Pensions and Tax

nomad97

nomad97

Resident Geek
I first noticed the error on my annual tax code a year ago but thought that it would right itself this year. It didn't and the error was repeated. The error was very simple, they increased the value of my State Pension for the year on my tax codes for the years 2013/14 and 2015/16. The pension rate is deducted from the personal allowance to determine how much remains to be offset against any other income. Only one small problem, my State Pension is frozen in time and will never receive any increases, either through index linking or changes in the basic pension.

Accordingly, I wrote to the Taxman on 20th May to query this apparent mistake and received his reply today, albeit the letter was dated 22nd July. He did apologise for the late reply. He also apologised for the error and enclosed a cheque for the over payment of tax. I hope their records now reflect that my pension, and thousands like me, do not receive any increase to their pension each year.

If you are receiving a British State Pension you may like to check your annual coding to make sure this has not happened to you too.
 
nomad97 said:
I first noticed the error on my annual tax code a year ago but thought that it would right itself this year. It didn't and the error was repeated. The error was very simple, they increased the value of my State Pension for the year on my tax codes for the years 2013/14 and 2015/16. The pension rate is deducted from the personal allowance to determine how much remains to be offset against any other income. Only one small problem, my State Pension is frozen in time and will never receive any increases, either through index linking or changes in the basic pension.

Accordingly, I wrote to the Taxman on 20th May to query this apparent mistake and received his reply today, albeit the letter was dated 22nd July. He did apologise for the late reply. He also apologised for the error and enclosed a cheque for the over payment of tax. I hope their records now reflect that my pension, and thousands like me, do not receive any increase to their pension each year.

If you are receiving a British State Pension you may like to check your annual coding to make sure this has not happened to you too.
Click to expand...

Hang on to the letter Nomad. This is ideal proof of residence should you need to apply for a new passport within the next 12 months.
 
I have just checked mine, Nomad. I think there is the same mistake on mine. I will pm or call you later for a double check.

Many thanks for drawing this possible problem to members' attention.
 
johnb said:
I have just checked mine, Nomad. I think there is the same mistake on mine. I will pm or call you later for a double check.

Many thanks for drawing this possible problem to members' attention.
Click to expand...

See you at coffee time.
 
Thanks Colin, did you open up the form? They want your whole life's history and then some more. LOL.

It may be easier to write:

HM Revenue and Customs,
Pay As You Earn and Self Assessment,
BX9 1AS,
United Kingdom

Give them your name, National Insurance number, address and a brief description of your tax problem. Please be patience, sit back and wait approximately 3 months. They will reply eventually and hopefully enclose a cheque for the over payment too.
 
When they have amended things to show a static pension amount. Do you think they need to be informed EVERY year????
 
Maybe! Clearly, they use a computer program to complete the tax allowances and, if that is hard coded in the program, its going to repeat itself every year. I hope they have the option to set a default value on a case by case basis. I guess its wait and see what happens next year.
 
nomad97 said:
Thanks Colin, did you open up the form? They want your whole life's history and then some more. LOL.

It may be easier to write:

HM Revenue and Customs,
Pay As You Earn and Self Assessment,
BX9 1AS,
United Kingdom

Give them your name, National Insurance number, address and a brief description of your tax problem. Please be patience, sit back and wait approximately 3 months. They will reply eventually and hopefully enclose a cheque for the over payment too.
Click to expand...

I used the form to report an error on my tax code earlier in the financial year. It worked without any problems and saved a trip to the Post Office
 
You must log in or register to reply here.
Back
Top