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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15658
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am recieving a company pension and am still working i have

Customer Question

I am recieving a company pension and am still working i have had my tax code on my salary changed to D0 and my pension has my personal allowance code i am being stopped 40% on my salary but my pension is only 13,000 per year so what happen to the tax threshold between my tax code and when i would have to pay 40% there is around £20,000 pound that should still be taxed at the basic rate but it appears that i am being taxed 40% on it all will i recieve a tax rebate for the difference or should i contact IR about this.
Submitted: 3 years ago.
Category: UK Tax
Expert:  Tony Tax replied 3 years ago.

The tax office normally transfer a personal allowance to a pension as that source of income will be with you until you die but you need to contact the tax office on the number here to have your salary code amended from D0 as you still have a large part of the 20% tax band available.

The tax office computer will re-work your salary tax code while you are on the phone and when the new one is first operated by your employer the excess tax paid will be repaid via your salary.

I hope this helps but let me know if you have any further questions.

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