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Where Taxpayers and Advisers Meet

Tax code change after retirement

howayman
Posts: 1
Joined: Wed Jan 09, 2019 6:30 pm

Tax code change after retirement

Postby howayman » Wed Jan 09, 2019 6:40 pm

I retired in November 2018 and had always been on the PAYE system during my employment. My pension, of course, is significantly less than my previous salary but I received a tax code which removed all my tax allowances. Effectively, my pension is now being taken at 40% with no allowance.

How can this be? I've contacted HMRC but received only a vague explanation about spreading the tax bill over 12 months. By my reckoning, at the end of March 2019, I'll have paid many hundreds of pounds too much in tax.

coffeeman
Posts: 3
Joined: Sun Jan 06, 2019 4:21 pm

Re: Tax code change after retirement

Postby coffeeman » Wed Jan 09, 2019 9:16 pm

Similar thing happened to me when I was off sick for over 12 months, went back to work same job and HMRC put me on an emergency code, when I finish work sent in P60
and got all my tax back at 20%, When you say your drawing your pension is it a company pension? sounds to me your on an emergency tax code, you need to get in touch with HMRC and inform them you retired 'That's if your not drawing your state pension' good luck with that


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