Early Retirement

[sphinxy]

i have retire early i get a personal pension of £269 a month i have been stopped £220 basic rate tax on this is this right

[factor-fiction]

Pensions are taxable but on the face of it your earnings are below the tax threshold- but it depends on what your tax code is and what your other earnings are.

[sphinxy]

Hi Factor-Fiction
i have just received first payslip from pension provider for this month, tax code on it BR which i assume is Basic Rate which is 25% I have not worked since December 31 2013

[bhg481]

Basic rate tAx is 20%. They seem to have given you 20% of your pension instead of taking off 20% for tax. Have you misread your pay slip?

[sphinxy]

Hi bhg481 payslip reads Gross Pension£269.14 Deductions £220.60 Net Pension £48.54

[bhg481]

What is your tax code? It should say on your payslip. Unless you have other income or you are owing tax for last year, you are far below the threshold for paying tax.

[sphinxy]

bhg481 tax code on payslip is BR whih i uderstand is Basic Rate

[bhg481]

I think you need to get in touch with your pension provider, it seems to me that there is no way that he should have deducted so much tax.

[sphinxy]

Will Do thanks bgh481

[factor-fiction]

GHave you checked your bank account- maybe the right amount has gone in and it was just an error on the pay advice slip

[factor-fiction]

Have you checked your bank account- maybe the right amount has gone in and it was just an error on the pay advice slip

[factor-fiction]

Don't know what happened - my answer was still in the box as if it was waiting for me to press submit

[Prudie]

I'd check with your tax office. My first thought is they're paying your pension with a BR code because they think you are still working somewhere else. BR is usually used for second jobs.

[factor-fiction]

You could also have a BR code because they are waiting for your p45 from your last employer.

[dzug2]

But the P45, if it ever arrives, will be last year's and therefore no good

[factor-fiction]

Probably, but not necessarily dzug. It depends when he started drawing his pension and what period it covers. If his old job ended in mid April then they'd need a p45.
But maybe he has other income too- eg other pensions

[Peter Pedant]

I agree it sounds as tho he is being taxed in his first pension year with his old code...

contact the tax office and get a new code on the grounds of hardship...