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: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am a pensioner who used not to pay tax and in 2014 I received

Resolved Question:

I am a pensioner who used not to pay tax and in 2014 I received a lump sum of £33,217.18 from Social Welfare Ireland being my state pension for the period 13/04/2007 to 23/01/2014, I have declared this amount to HM Revenue for the year 2014/15. I am being assessed as owing £7,521.60 due by 31 January 2016 and also they are looking for a 1st payment on account of £3,760.80 by 31 January. They have not read my letter which accompanied the return explaining it was a one off payment.
Firstly, I want to know is there any way I can get the bill reduced and, secondly, how do I inform them I do not owe tax towards my next bill for 2015.16.?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Was the lump sum paid to you as a lump sum because it was late, ie in arrears or because you deferred your Irish state pension for nearly seven years?
Customer: replied 1 year ago.
I wasn't aware I could claim an Irish Pension until a friend told me as the Pension people here in the UK said my Irish points had been taken into consideration when I was awarded my pension here. I was fortunate to get it backdated and am receiving a monthly Irish pension now.
Expert:  TonyTax replied 1 year ago.
Thanks. Call the number here (0300(###) ###-#### ***** refer HMRC to their own manual on pension arrears paid as a lump sum which says that where it is to the advantage of the taxpayer, the payment should be reallocated to the tax years in which it should have been paid and assessed to tax accordingly or not as the case may be if your income was very low in those years. HMRC may want you to find out from the Irish pension payer how much of the pension applies to each tax year. The regulations on this can be found here: http://www.hmrc.gov.uk/manuals/sammanual/sam121160.htm When you call the tax office about the pension arrears being reallocated, you ask for them to reduce the payments on account for 2015/16 to £0 as they will not be due in any event. I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions