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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4810
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Good morningI have a small pension worth 10,200.00 currently

Customer Question

Good morning
I have a small pension worth 10,200.00 currently with ReAssure they have advised I will have to pay 40% tax because it has gone over 10,000, is this correct it seems very high for so little.
my earnings to date this year are 8000 and are not expected to exceed 15,000.
please advise
Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Sheila, I am Keith, one of the experts on Just Answer and pleaswd to be able to help you with your question. Sounds a load of codswallop to me. With an income 18.2K you are well within the 20% tax bracket without even taking into account your personal allowance. I suggest that you write to ReAssure and ask them to apply PAYE to your pension. Insurance companies, in my experience, hate doing this. I have personally dragged two household names screaming and kicking into compliance. You will, of course, get your over deducted tax back at the end of the year when you self assess, but why wait that long? Operating in a PAYE environment you must check that correct code numbers have been issued by HMRC. Remember your tax office and the insurabce company's will be different. It just takes a bit of time to sort it all out. I do hope that my reply has shown you a way forward.