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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14282
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Received a letter from HMRC saying I owe £4018 as I haven't

Customer Question

received a letter from HMRC saying I owe £4018 as I haven't paid enough tax in the year 2015 to 2016. I am employed, so trusted my company to have the correct tax code. I withdrew my pension, 25% was tax free the remainder I assumed I had paid the correct level of tax. I also trusted my financial adviser & pension company to have actioned things correctly
Submitted: 3 months ago.
Category: Tax
Expert:  Sam replied 3 months ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 3 months ago.

Hi

That is where the underpayment would have come from - as pension plan admin are only allowed to make payments with 0% tax (so tax free) or 20% so its likely with the lump sum this pushed you into the 40% tax bracket

To Clarify this factor please adviise

Pay and Tax from employment and tax code used

Total pension payment (so the 100% amount) - and the tax deducted and tax code used

Thanks

Sam

Customer: replied 3 months ago.
who is at fault, my employers or pension company
Expert:  Sam replied 3 months ago.

Hi

I dont know that until you provide the information asked for

Thanks

Sam