How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am 65 in December and retiring I already take 3 small pensions

Customer Question

I am 65 in December and retiring I already take 3 small pensions and with my OAP total my income will be approximately £11,000 per annum. I currently pay tax on my existing pensions. Do I have to contact my pension providers to advise them of my change in income and do I have to submit a tax return when I retire and at the end of the tax year
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. By the end of December 2015 we will be three-quarters through the current tax year. HMRC used to issue a P161 to those who were approaching 65 to ask them to give details of their income so that they could allocate personal allowances accordingly in the light of their new circumstances. The form is now only issued to those born before 6 April 1938. What I suggest you do is to call HMRC on the number here either now if you know what your salary to the date you retire will be or as soon as possible after you receive your P45, tell them that have retired and ask them to review your personal tax allowance allocation in light of that fact and that you have taken your state pension. Whether HMRC will be able to allocate your personal allowance in such a way as to ensure that you have paid the correct amount of tax by 5 April 2016 is dependent on the level of your income for the whole year. If they cannot, they may ask you to complete a tax return after the end of the tax year on 5 April 2016. Alternatively, as HMRC now issue a P800 tax calculation to many taxpayers who are not in self-assessment after the end of a tax year, there may be no need for you to complete a tax return as all your PAYE income will be reported to HMRC by your employer and your pension payers and the Department of Work and Pensions will inform HMRC of your state pension. The P800 shows whether you owe any tax or are due a tax repayment. There is more information on the P800 here. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
My answer was posted as an info request because I could not see the rating box in the new software we use on this site. Here is my answer which will give you the ability to rate it. Thanks and apologies for the error.

"Hi.

By the end of December 2015 we will be three-quarters through the current tax year. HMRC used to issue a P161 to those who were approaching 65 to ask them to give details of their income so that they could allocate personal allowances accordingly in the light of their new circumstances. The form is now only issued to those born before 6 April 1938.

What I suggest you do is to call HMRC on the number here either now if you know what your salary to the date you retire will be or as soon as possible after you receive your P45, tell them that have retired and ask them to review your personal tax allowance allocation in light of that fact and that you have taken your state pension. Whether HMRC will be able to allocate your personal allowance in such a way as to ensure that you have paid the correct amount of tax by 5 April 2016 is dependent on the level of your income for the whole year. If they cannot, they may ask you to complete a tax return after the end of the tax year on 5 April 2016.

Alternatively, as HMRC now issue a P800 tax calculation to many taxpayers who are not in self-assessment after the end of a tax year, there may be no need for you to complete a tax return as all your PAYE income will be reported to HMRC by your employer and your pension payers and the Department of Work and Pensions will inform HMRC of your state pension. The P800 shows whether you owe any tax or are due a tax repayment. There is more information on the P800 here.

I hope this helps but let me know if you have any further questions."

Expert:  TonyTax replied 1 year ago.

Hi again. It's been a few days since I answered your question. Is there anything you need further clarification on?