Good News stories

[Pulcinella]

I'm mostly ignorant on tax stuff but I'm thinking that because the underpaid amount relates to the time since 2019 then at some point since I will have gone over the threshold. We are talking small amounts so I'm left wondering if it matters. My former employer suggests talking to HMRC but I'd prefer to let sleeping dogs lie if possible.

I think you need to ask your former employer for a breakdown by tax year.
Then perhaps find a financial adviser who offers a few minutes of free advice (say you're thinking of needing help with an online self-assessment) and see what they say.
You might find that Citizens Advice have someone that can help.
Anything is better than trying to contact HMRC, but I would have thought that your previous employer should resolve this, not you.
They/their pension provider should have tax code information on you.

[Petrushka]

I think you need to ask your former employer for a breakdown by tax year.
Then perhaps find a financial adviser who offers a few minutes of free advice (say you're thinking of needing help with an online self-assessment) and see what they say.
You might find that Citizens Advice have someone that can help.
Anything is better than trying to contact HMRC, but I would have thought that your previous employer should resolve this, not you.
They/their pension provider should have tax code information on you.

In their letter my employer said this: 'After research and discussion with HMRC as to how best to make the payment and whether it should be taxed, it was concluded that the payment should be put through the pension scheme payroll and taxed at your marginal tax rate. You may need to disclose the tax suffered on a tax return to either recover tax not due or to pay further tax at a higher marginal rate depending on your circumstances '.

It is the final sentence that bothers me. Will there, in view of the likely small amount either way, be any comeback if I do nothing at all?

[Pulcinella]

In their letter my employer said this: 'After research and discussion with HMRC as to how best to make the payment and whether it should be taxed, it was concluded that the payment should be put through the pension scheme payroll and taxed at your marginal tax rate. You may need to disclose the tax suffered on a tax return to either recover tax not due or to pay further tax at a higher marginal rate depending on your circumstances '.

It is the final sentence that bothers me. Will there, in view of the likely small amount either way, be any comeback if I do nothing at all?

If you are being taxed on it at marginal rate that sounds fine, as nothing you've written suggests that you pay a higher rate and would as a consequence owe more than will be deducted.
Probably not worth trying to get a refund if you think you've been overtaxed; if a marginal rate applies ordinarily to the pension and any other benefits you receive then the chances are you'll be charged the correct amount (though pro rating by tax year rather than having it as a 2023–2024 lump sum would have been fairer, though unlikely to make any/much difference as personal allowances have been frozen for a while).

Hope that reassures you.
I'm sure they won't come knocking on the door.
Just don't risk it all at once on the horses!

[Petrushka]

If you are being taxed on it at marginal rate that sounds fine, as nothing you've written suggests that you pay a higher rate and would as a consequence owe more than will be deducted.
Probably not worth trying to get a refund if you think you've been overtaxed; if a marginal rate applies ordinarily to the pension and any other benefits you receive then the chances are you'll be charged the correct amount (though pro rating by tax year rather than having it as a 2023–2024 lump sum would have been fairer, though unlikely to make any/much difference as personal allowances have been frozen for a while).

Hope that reassures you.
I'm sure they won't come knocking on the door.
Just don't risk it all at once on the horses!

Thanks. I'm assuming that you were employed in taxation? It's not my area at all and any mention of tax has me reaching for the smelling salts and paracetamol!

[Pulcinella]

Thanks. I'm assuming that you were employed in taxation? It's not my area at all and any mention of tax has me reaching for the smelling salts and paracetamol!

For a few weeks each school/university holiday, as my mum worked there and got me enrolled as an SPTCA (short-period temporary clerical assistant). That actually meant that I started paying my stamp quite early on so fairly readily reached my full quota (despite some years spent in Canada, which should have qualified but somehow got lost), though I don't actually get a full state pension as in one of my jobs there was a certain element of opting out (which apparently led to more money through that pension scheme than through the state system).
I was never able to get a convincing breakdown from them.

So I'm no expert, but I think things are unduly complicated and not explained well to people for whom it's all a mystery.
Yes, you MAY have to contact HMRC if......but those ifs are most unlikely to apply to you.
Two things you DO need to be thinking about perhaps are (i) that any Gift Aid donations you make are valid (i.e., you pay at least as much tax as is being reclaimed) and (ii) now that savings interest rates have increased you declare taxable (i.e., non-ISA) interest you've received if it's more than £1000 pa (not increased in the Autumn statement, so loads of people will be affected this tax year).

[LMcD]

... o, better than that! - there are 52.4 weeks in a year : so that makes it a gain of £13.10. Not to be sniffed at at all...

.

I've already spent the £13 on birthday-related goodies, but I'll see what I can find for 10p in the Spar shop round the corner.

[Old Grumpy]

I did a taste test against Stones. Stones is much smoother and less fiery, though quite a bit more expensive.

If smoothness is ones requirement, the Stones is worth the extra money IMO.

Stones Ginger Wine is the sort of thing students bought (myself included) for cheap EtOH.

Haven't bought any for years!

[oddoneout]

Related to this, I've had a letter from my former employer saying that due to legal rulings in respect of sex equality they have reviewed my defined benefit pension and found that I've been underpaid since retirement at the end of 2019. It's a relatively small pension but the good news is that I'm owed nearly £400. The bad news is that there will be tax implications. Given the fact that the amount of tax will likely be very small due to my being just a bit under the tax threshold for much of the time, I'm wondering if I can reasonably ignore it as the last thing I want is to get HMRC on my case.

I don't think you have much choice about that

https://www.gov.uk/tell-hmrc-change-of-details/income-changes

Your employer or pension provider tells HMRC when:

• you start or finish your job
• there’s a change in the money you earn from your job or get from your pension

What it means in terms of the nature of that engagement I can't help you with.
HMRC is a complete mess - have they even got round to re-instating the help line they had to shut down for 3 months earlier this year? Even bona-fide tax advisers and accountants wren't able to get through at all. Having lots of pensioners tipped over into tax paying isn't going to help.
I have to complete a tax return each year, but since in the course of the last 2 tax years I have had at least 6, very different, tax codes sent(and previous to that they varied considerably, but at least not so many of them!) I sometimes wonder what the point is of going to the trouble of assembling and then filling in all that information, especially since HMRC will already have most of it.

[Petrushka]

I don't think you have much choice about that
https://www.gov.uk/tell-hmrc-change-...income-changes[/LIST]What it means in terms of the nature of that engagement I can't help you with.
HMRC is a complete mess - have they even got round to re-instating the help line they had to shut down for 3 months earlier this year? Even bona-fide tax advisers and accountants wren't able to get through at all. Having lots of pensioners tipped over into tax paying isn't going to help.
I have to complete a tax return each year, but since in the course of the last 2 tax years I have had at least 6, very different, tax codes sent(and previous to that they varied considerably, but at least not so many of them!) I sometimes wonder what the point is of going to the trouble of assembling and then filling in all that information, especially since HMRC will already have most of it.

My former employer has said that the payment will be taxable so I don't have to worry on that score. I was more concerned that due to it relating to the past 4 years whether or not I would need to pay more tax with me possibly going over the threshold if the payments had been made at the correct time for the correct figure. I'd rather run a mile in tight shoes than tangle with HMRC.

[french frank]

I would just write them a brief letter and keep a copy. Let them work out if you owe anything - it's what they're paid for; and I can't see that the taxable bit could amount to much, so they may write it off anyway.

I just wrote a letter when they asked me point blank whether I had undeclared offshore assets. I detailed what I had and asked if any of thm were offshore assets (they weren't). They never explained why they thought I had.

[teamsaint]

Stones Ginger Wine is the sort of thing students bought (myself included) for cheap EtOH.

Haven't bought any for years!

If you drink too much at an early age, it can make you grumpy, I have heard

[Serial_Apologist]

Frome the bell tolls??

No more!! - the town council has finally relented and given planning permission for its annual grotto hut in the woods!

[eighthobstruction]

....just saw the last 10 minutes of Wonderful Life and cried....

[Nick Armstrong]

....just saw the last 10 minutes of Wonderful Life and cried....

You’ve gone early, 8tho!

[eighthobstruction]

...Oh I suppose it's better than being in a fug ref cards - presents and food [buying & cooking]....Oh I am in a fug with just a few minutes alleviation....for a few moments I was lifted....now I must face it with sentimentality in my breast - rather than steel....ask me again about Jan^th 2024...