Pension & Tax

[fly-catchers]

Eventually got through to HMRC after an hour on the phone listening to some bland music. Now my wages have stopped they have applied my Personal Allowance to the final salary pension and left the 2 years Career average as BR. Does that sound correct? My full pension (both parts) without the Section C supplement is comfortably under the £12500 Personal allowance. But once the supplement is added just takes me over.

Also noticed the Personal Allowance shown still has the £120 showing (the clothing cleaning allowance). Does HMRC remove that or should I? As long as it doesn't involve another phone call!
Did try the Web Chat but so far the link has never appeared on the page due to them so busy. And there only so many hours in the day refreshing the page in the vain hope it might appear!

[lordthornber]

HMRC on Twitter is very quick and 7 days a week, very useful if you're a Twitter user.

[fly-catchers]

Not on Twitter. But am on FB.

[deltaforce]

Ditto. They told me the £120 allowance should remain this year but should not be claimed for next financial year.

[fly-catchers]

Ditto. They told me the £120 allowance should remain this year but should not be claimed for next financial year.

Thanks!

[stephen500]

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[stephen500]

Eventually got through to HMRC after an hour on the phone listening to some bland music. Now my wages have stopped they have applied my Personal Allowance to the final salary pension and left the 2 years Career average as BR. Does that sound correct? My full pension (both parts) without the Section C supplement is comfortably under the £12500 Personal allowance. But once the supplement is added just takes me over.

Also noticed the Personal Allowance shown still has the £120 showing (the clothing cleaning allowance). Does HMRC remove that or should I? As long as it doesn't involve another phone call!
Did try the Web Chat but so far the link has never appeared on the page due to them so busy. And there only so many hours in the day refreshing the page in the vain hope it might appear!

I spoke to HMRC today and yes is you are part way through a year and you have left Royal Mail, they will apply most of the rest of your tax code to the RMSPS pension and a BR (20%) code to RMPP as they cannot spilt taxcodes into three in any one tax year (so they told me)
They also took off my uniform allowance.
They told me once the new tax year kicks in, that my tax code will be spilt automatically between RMSPS and RMPP as my pensions are below the tax allowance.
If your supplements take you above the tax threshold, I would ring them and ask them to spilt the allowances.
I rang this morning and got through quickly both times. Persevere.
Better to speak to a person.
My tax code for the rest of the tax year for RMSPS is 1128 (which means RMSPS is tax free) and RMPP is BR so 20% (which for me is £29 tax per month for five months).
I think at the end of the tax year they will owe me a small rebate.
Btw if you are due an excess DBCBS and you already have the BR code for RMPP and your income for the year is not on target to go into the 40% range, they are confident that you will only pay 20% tax on the 75% that is taxable. If we do pay 40% we can claim it back, but it is more of a pain.

[stephen500]

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[fly-catchers]

Well looking on the RMSPS site I see they have changed the tax code for my final salary pension for this month. So no tax on it and a bit of a refund as well. The smaller CARE pension is still on BR. No sign of the supplement being added on yet. Though when I emailed RMSPS they did say once they have processed it they will let me know.

[hatter68]

Well looking on the RMSPS site I see they have changed the tax code for my final salary pension for this month. So no tax on it and a bit of a refund as well. The smaller CARE pension is still on BR. No sign of the supplement being added on yet. Though when I emailed RMSPS they did say once they have processed it they will let me know.

How long does it take for them to change tax code and pay RMSPS supplement. I have been receiving NRA 60 benefits since turning 60 in January but have now left. I have received letter from RMPP with details of revised plan including supplement but they told me to contact capita about the RMSPS supplement. Had a brief phone conversation with someone but got no date. Also emailed them but no reply to that as yet.

[stephen500]

Well looking on the RMSPS site I see they have changed the tax code for my final salary pension for this month. So no tax on it and a bit of a refund as well. The smaller CARE pension is still on BR. No sign of the supplement being added on yet. Though when I emailed RMSPS they did say once they have processed it they will let me know.

If you retired this year, you cannot avoid tax on your 2nd pension. The tax code will not be spilt three ways. if next year, you are below the tax threshold, they will spilt the code between 2 pensions. They have told me next year, they will do this and I will pay no tax.
This year as it can't be spilt into 3. RM, RMSPS and RMPP. RMPP will be BR (20%) and I expect to pay £29 per month till the end of the tax year and then get a small refund.

[stephen500]

Well looking on the RMSPS site I see they have changed the tax code for my final salary pension for this month. So no tax on it and a bit of a refund as well. The smaller CARE pension is still on BR. No sign of the supplement being added on yet. Though when I emailed RMSPS they did say once they have processed it they will let me know.

How long does it take for them to change tax code and pay RMSPS supplement. I have been receiving NRA 60 benefits since turning 60 in January but have now left. I have received letter from RMPP with details of revised plan including supplement but they told me to contact capita about the RMSPS supplement. Had a brief phone conversation with someone but got no date. Also emailed them but no reply to that as yet.

I spoke to HRMC a week after my P45, they said it takes 10 working days for pensions to normally change the code. Because of Christmas, it looks too late for Dec, so prob Jan and no tax for RMSPS and 20% for RMPP till the end of the tax year.

[hatter68]

Well looking on the RMSPS site I see they have changed the tax code for my final salary pension for this month. So no tax on it and a bit of a refund as well. The smaller CARE pension is still on BR. No sign of the supplement being added on yet. Though when I emailed RMSPS they did say once they have processed it they will let me know.

How long does it take for them to change tax code and pay RMSPS supplement. I have been receiving NRA 60 benefits since turning 60 in January but have now left. I have received letter from RMPP with details of revised plan including supplement but they told me to contact capita about the RMSPS supplement. Had a brief phone conversation with someone but got no date. Also emailed them but no reply to that as yet.

I spoke to HRMC a week after my P45, they said it takes 10 working days for pensions to normally change the code. Because of Christmas, it looks too late for Dec, so prob Jan and no tax for RMSPS and 20% for RMPP till the end of the tax year.

Eventually spoke to Inland Revenue this morning after 40 minute wait and they changing tax codes also spoke to RMSPS they got my email and said would get supplement in january.

[fly-catchers]

Well looking on the RMSPS site I see they have changed the tax code for my final salary pension for this month. So no tax on it and a bit of a refund as well. The smaller CARE pension is still on BR. No sign of the supplement being added on yet. Though when I emailed RMSPS they did say once they have processed it they will let me know.

How long does it take for them to change tax code and pay RMSPS supplement. I have been receiving NRA 60 benefits since turning 60 in January but have now left. I have received letter from RMPP with details of revised plan including supplement but they told me to contact capita about the RMSPS supplement. Had a brief phone conversation with someone but got no date. Also emailed them but no reply to that as yet.

I spoke to HRMC a week after my P45, they said it takes 10 working days for pensions to normally change the code. Because of Christmas, it looks too late for Dec, so prob Jan and no tax for RMSPS and 20% for RMPP till the end of the tax year.

Eventually spoke to Inland Revenue this morning after 40 minute wait and they changing tax codes also spoke to RMSPS they got my email and said would get supplement in january.

Still waiting to hear about my supplement! As you left like I have this year would expect the supplement to be back paid if it does turn up till the January payment.

[fly-catchers]

I too phoned RMSPS today and was told my full supplement plus arrears would be added to my January pension. So hopefully it will. My December pension does now not have any tax applied to the final salary part and also a tax refund of £76. With the CARE smaller pension still taxed at BR until the new tax year. So overall things working out quite well particularly given Covid!