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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4190
Experience:  FCCA FCMA CGMA ACIS
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I was widowed last year and receive a small pension from my

Customer Question

I was widowed last year and receive a small pension from my husbands firm
I also get a personal pension from London Borough of Sutton for whom I worked until I retired
And I get a state pension.
My quwery is that that tax is deducted from my own persion, but tax is also deducted from my late husbands pension.
I thought that tax was taken from just one source taking into account the other sources of income ie tax on an amalgamated figure
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello I am Keith one of the experts on Just Answer and pleased to be able to help you with your question. The normal arrangement would be for your main pension [Sutton] to be the tax base. A tax code would be issued against that income as normal. Your pension from your husband's firm would be taxed at 20% at source with a code of 0T. Your State Pension is taxable, but paid gross. To collect the tax due on this your Sutton pension tax code number would be reduced to achieve this thus making you tax neutral at the year end. However, you will appreciate that if any of these codes are incorrect the wrong tax will be deducted. You should always check any code number issued on each and every occasion and query the code if it is not right and get it amended. HMRC have got my tax code wrong first thump these 20 years. You could have knocked me down with a feather when for 15/16 it was right, well almost! I do hope that my answer has been of assistance.
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Expert:  bigduckontax replied 2 years ago.

Thank you for your support.