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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4425
Experience:  FCCA FCMA CGMA ACIS
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I wish to start paying income tax.I have not paid tax in the

Customer Question

I wish to start paying income tax.I have not paid tax in the UK, what do I do to obtain a reference number of a tax code to be able to undertake a self assessment or to find out how much tax is due from me.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Are you self employed or are you in paid employment?
Customer: replied 2 years ago.

I am not employed, but I receive annual pensions from two sources

Expert:  bigduckontax replied 2 years ago.
Right; your pension providers are presumably operating PAYE and deducting tax from the pensions. If they are not doing this then ask then to deduct tax. They will then obtain tax codes from HMRC. You will be advised of these codes by your HMRC tax office. Always check tax codes for accuracy. The PAYE system is designed to make you tax neutral at the year end. With two pensions from different sources you have to be careful that you are not allocated two tranches of personal allowance. If one of your pensions is a State Pension it is liable to tax but is paid gross. In that case the tax code issued to the other pension provider should take account of the State Pension to ensure correct tax deductions by the year end.
Many Pension providers are loath to deduct tax, but you can demand that they do. If no tax is being deducted then you are in receipt of income which has not been taxed at source and must self assess at the end of every tax year. Your local HMRC tax office will be able to assist you in providing the necessary forms or you can do it on line.
I do hope I have been able to help you with your taxation position.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your excellent support.