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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13980
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I receive a BT Pension which I have done since I was 60, I

Resolved Question:

I receive a BT Pension which I have done since I was 60, I am now 64. All of a sudden this month they have taken an extra £50 tax from that amount and I don't understand why?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question, we are not HMRC but Just Answer, with UK tax experts (some of us are ex HMRC staff!) Would you still like to proceed with me trying to assist you? ThanksSam
Customer: replied 2 years ago.

Yes please Sam

Expert:  Sam replied 2 years ago.
Thanks - The only way your pension department can make any change t your deductions are if they have received a change of tax code from HMRC instructing them to do so - but they should also then send you a P2 also advising you of the change. You state you are 64 - may I ask when you will be 65 ? Have you other pensions due to start - state pension or another former employer pension - or are you in receipt of any benefits from the Dept of Work and Pensions - as this too can have an effect on matters Sam
Customer: replied 2 years ago.

I receive the State Pernsion, I am 65 next December 2016

Expert:  Sam replied 2 years ago.
Hi Then that should not have effected matters yet - but nearer to Dec 2016 - and I assume that you have no other income other than this BT pension - and have not received any change of tax code from HMRC.Do you owe HMRC any money from previous tax years? Can I ask how much the pension is per annum ThanksSam
Customer: replied 2 years ago.

I have received recently a tax rebate of £27.00. Mt State Pension is £595 per month, and my BT Pension was £185.00 a month but was reduced this month to £135

Expert:  Sam replied 2 years ago.
HiI would then say that the state pension is the reason but as your annual income you can receive tax free is £10,600 and the gross income state pension is £595 x 13 = £7735 and your BT pension is £185 x 12 = £2220 - this adds up to an annual position of £9955 - so you should NOT be paying any tax. My advise ring HMRC with the figures I have provided (ring as close to 8pm this evening or as soon after 8am tomorrow morning and you should get through very quickly to an officer) and ask them to get your tax code for the BT pension put right. Their contact details are Telephone: 0300(###) ###-####hey can then get this all sorted out for you, and you should then find you are refunded back the tax taken this month Let me know if I can be of any further assistance. I am about to meet with clients, but will respond to any furtehr queries you have on my return (if this is acceptable). You can always come back after speaking to HMRC,but if you are happy with the service I have provided, it would be appreciated if you could rate the level of service I have provided. Thanks Sam
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