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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am on a BT Company pension which paid me 11,484.12 for the

Customer Question

I am on a BT Company pension which paid me 11,484.12 for the tax year ended 2013-14. The income tax paid on this amount was £407. My tax code was 1000L

I also worked for short periods during the year as an examinations invigilator at my local sixth form college earning £1491.94p of which I paid £298 income tax. My tax code for this was Category A with a final code BR.

Does this seem in order? Could I have arranged a system with the IR to pay less income tax or none at all as I have a spouse who is not working and so the above income with some expenditure from our savings was used to pay our bills. My wife chooses not to seek employment as she cares for her elderly mother. I will be eligible for my state pension from October 2015.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

You should arrange to self assess for the 13/14 tax year. The additional employment and the tax paid will then be taken into account and any over payment refunded. Your invigilating was taxed at full basic rate of tax (20%) and there may have been an over deduction as a result. The tax treatment by the college is entirely correct.

Your wife is a separate legal person for tax purposes and the higher personal allowance for married persons went out many years ago basically when the change was made. There is a higher allowance available, but one of other of you has to have been born before 1935 to benefit therefrom.

When your State Pension (SP) kicks in it is a taxable emolument, but not taxed at source. Your tax code on your BT pension will be reduced to cover this tax liability. The tax codes used should be thoroughly checked to ensure that HMRC have got your exact SP correct. With SERPS, secondary pensions, graduated retirement benefit [from the 60s] etc HMRC often get the SP wrong.

Sorry to have had to rain on your parade.
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Customer: replied 3 years ago.

Thank You. I have been invigilating part time every year since 2010 so if HMRC have overtaxed me for the last financial year would I be able to claim for the years from 2010?

Expert:  bigduckontax replied 3 years ago.
You should be able to claim, but remember that in the current environment with penalties in place HMRC may try to impose these for failure to make timely returns. The counter to that is, of course, that you had no requirement to make a return, not being in receipt of income whiich had not been taxed. I am pretty sure it will not come to this though.
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.