Why has my pension gone down?
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Correct figures are here https://www.gov.uk/government/public...ds-for-2015-16 at para 2
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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...
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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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
I don't own this space under my name. I should have leased it while I still could
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%.
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%.
I don't own this space under my name. I should have leased it while I still could
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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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...
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
How a lone fireman has won a £550million pensions bonanza | Daily Mail Online
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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...
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...
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!
