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Tax

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
freespeech
MDEC
Posts: 762
Joined: 28 Jun 2007, 16:35

Tax

Post by freespeech »

Someone I know took their NRA60 and 65 benefits early with a Feb date. By the time all the monies were paid out they were in a new tax year and taxed accordingly. If they were paid their taxable lump sums in Feb they would have paid no tax last year and that would have also meant less "earnings" this year. As it is they are now likely to break their £12,570 allowance for the year. Has anyone tried to have a conversation with RM (late payment) or HMRC to split their payments over two years as should have been paid?
RobertT
EX ROYAL MAIL
Posts: 6644
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: Tax

Post by RobertT »

I'm no tax expert, but as far as I'm aware, it's not possible to carry the Personal Tax Allowance forward or back. It's case of any income is taxed in the financial year you receive it.

HMRC are in charge of tax, so any conversation would need to be with them. But I wouldn't have thought they would budge.

Has your friend already contacted them? What did they say?

One possible way to reduce the impact may be to take advantage of the Marriage Allowance, if they fit the criteria: https://www.gov.uk/marriage-allowance
Links to all RM pension related websites are here