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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My wife has just had her first pension payment from the

Customer Question

My wife has just had her first pension payment from the Local Council she worked for for the past 38 years. She has been issued with an 0TX Tax code and stoppages of approx. £73 taken from a £363 pension
Previously her earnings were under £10600 approx £10400 so did not pay any tax so she now gets £4344 per year in pension and starts paying tax how do we rectify this
Submitted: 1 year ago.
Category: UK Tax
Expert:  Tony Tax replied 1 year ago.

Hi.

The reason the 0TX code is being operated is probably because the pension payer wasn't give your wife's P45 that she should have received from her employer when she retired.

All your wife needs to do is to call HMRC on the number here and have them review her tax code and change it if necessary which is almost certaibnly the case while she is on the phone to them. The pension payer will be notified of the new tax code electronically.

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