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Why has my pension gone down?

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Why has my pension gone down?

Old 22nd Jun 2015, 14:07
  #21 (permalink)  
 
Join Date: Sep 2004
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Originally Posted by Pontius Navigator View Post
CK, it relates to pensions and tax relief and applies to lower rate tax payers as well.

I am not sure about 15/16 but certainly applied in earlier years.
The OP was asking about tax paid on his pension, not tax relief (and limits) on pension contributions.

Correct figures are here https://www.gov.uk/government/public...ds-for-2015-16 at para 2
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Old 22nd Jun 2015, 14:55
  #22 (permalink)  
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Many thanks for all the replies guys!

To clarify, having retired last year at 55, I was only getting the AFPS at the time of my tax code calculation. However I've now started some part-time work, so have registered for self assessment for this tax year...

Looking through my paper work I find that I received an Equiniti Advice of Payment in April showing a tax code of 1060L (as one would have expected), with a pension increase of only 0.8%, rather than the full 1.2% (not sure why).

However, in May, I received another Advice of Payment informing me of a tax code change to 560L, so I presume they've decided I underpaid last year...
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Old 22nd Jun 2015, 15:03
  #23 (permalink)  
 
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The first pension increase is proportionate depending when in the year you retired. If the CPI increase was 1.2% and you got only .8%, my guess is that you retired in August
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Old 22nd Jun 2015, 15:15
  #24 (permalink)  
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CK, the OP has clarified the question but to square the circle, I was talking only of pensions and tax thereon and NOT tax relief on pension contributions.

I certainly had my age relief last year pared back as I received more than the 27,500 limit. This year the age relief for my age group has been abolished.

The ways of HRMC are a mystery to all, including themselves. This year they have applied all my tax coding to one of my pensions which is less than the permitted relief. My other pensions and jobs are all taxed at 20%.
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Old 22nd Jun 2015, 15:46
  #25 (permalink)  
I don't own this space under my name. I should have leased it while I still could
 
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ANAPROP, you really need to examine last year's tax too. Taking Vox as correct, you got your full Service pay taxed at 20/40% for April to July at the rate assuming you would be paid at that rate for the year. When you ceased work yo h may have been given your overpaid tax back. Your pension, taxed separately at 20% would have been correct. However your combined income 4 months full pay taxed at 20% plus pension ditto,could put you back in 40%. In my case there was an underpayment of 1200 but as I expected this I simply banked it until if was due.
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Old 22nd Jun 2015, 15:47
  #26 (permalink)  
 
Join Date: Sep 2004
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Originally Posted by Pontius Navigator View Post
The ways of HRMC are a mystery to all, including themselves. This year they have applied all my tax coding to one of my pensions which is less than the permitted relief. My other pensions and jobs are all taxed at 20%.
They most certainly are. When I left I informed them in writing well in advance that I had no intention of seeking paid employment. Followed it up with a couple of phone calls to ensure they had received and actioned said letter.
Yet sure enough, despite the first advice from paymaster having the correct coding, the 2nd one had been changed to BR and no personal allowance applied!
Somewhat messed up my budget calculations, took 3 months to sort and another 7 months to get the tax refunded...
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Old 12th Jul 2015, 15:21
  #27 (permalink)  
 
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Not quite on thread, but is there any read across to mil pensions?

How a lone fireman has won a 550million pensions bonanza | Daily Mail Online
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Old 12th Jul 2015, 17:19
  #28 (permalink)  
 
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Hope someone is running a double check for the Services
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Old 12th Jul 2015, 19:08
  #29 (permalink)  
 
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I was hoping the oracle, AI R, would have an inside line on whether it had impacted any service leavers over the same period.........?
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Old 12th Jul 2015, 22:39
  #30 (permalink)  
 
Join Date: Feb 2001
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To clarify, having retired last year at 55, I was only getting the AFPS at the time of my tax code calculation. However I've now started some part-time work, so have registered for self assessment for this tax year...

Looking through my paper work I find that I received an Equiniti Advice of Payment in April showing a tax code of 1060L (as one would have expected), with a pension increase of only 0.8%, rather than the full 1.2% (not sure why).

However, in May, I received another Advice of Payment informing me of a tax code change to 560L, so I presume they've decided I underpaid last year...
ANAPROP

Almost identical situation having retired in Jan AFPS 05 (PA Spine) and suddenly found after a few months income decreased markedly. Tax code mysteriously dropped to 560L. Several hours on hold and a few choice words when able revealed HMRC had "assumed" I was still being paid as a regular and had taken it upon themselves to correct the situation. Code now restored to reflect full allowance and deficit recovered. It's a minefield. No apology offered either!
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