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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a pensioner, having retired in October 2014 at the age

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I am a pensioner, having retired in October 2014 at the age of 62 years. I have been given the tax code by my pension provider of 21T 0. I have to local authority pensions. one is £200 which I have 20% tax taken which leaves me with £160 per month and the other pension which I have code 21T 0 is £629.54 which £122.20 is taken. My state pension is £528,91 per month I feel that I am being over taxed by nearly £52. please help - thank you. this is my only income. Oh I receive PIP which is rax free I believe Personal individaul payment (replaces DLA)

Can you confirm whether your state pension is paid monthly (12 payments per tax year) or every 4 weeks (13 payments per tax year) please.
Customer: replied 2 years ago.

My state pension is paid every 4 weeks.


Leave this with me while I draft my answer.
Customer: replied 2 years ago.

I have not had an answer to my question as yet, just that more info is needed. Therefore cannot comment on service.

You don't comment on the service until you have been given an answer which I am working on now. Please bear with me.

Hi again.

You are entitled to a personal allowance of £10,600 for 2015/16. From that, you deduct the state pension which is taxable but does not have tax deducted at source (£6,876 (£528.91 x 13)), to leave you with net allowances of £3724 which converts to a tax code of 372L. If that code is operated against your £629.54 pension, you will pay £63.84 per month in tax

Call the tax office on the number here and ask them to review your tax codings and to make the necessary changes. They could even allocate £2,400 of your personal allowances against your £200 per month pension so that is paid to you gross and all your tax is then paid through one pension.

The Personal Independence Payment you receive is tax free as you say. Confirmation of that is here.

As you retired in the 2014/15 tax year, you should ask the tax office to review your tax position for that year. They may issue a P800 tax calculation to you which you should check carefully.

Finally, I'd make a complaint about your previous treatment the next time you call the tax office if I were you.

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

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