Hawkey99 wrote:Does anybody know how it works for tax codes when you take one of your pensions but continue to work.
Do you get a different tax code for your pension ?
Does your current tax code change?
Is there anything you actually need to do ?
Many thanks in advance for any help....
Just to add what Robert has stated:
I did take all of my various pensions @ 60 (both RM pensions and another deferred occupational pension from previous employment) but continued to work for RM for a month or two after my 60th.
Assuming that you earn enough to pay income tax, all of your RM pay will have your tax codes allocated to it at the start of the tax year and will continue until you tell HMRC otherwise and any additional income (pension or otherwise) will be taxed at BR rate (20%). The time to contact HMRC (I assume you have a tax account set up) is when you have received your final pay and when amounts due to you have been finalised. The phrase I used with HMRC being the revenue was 'predictable and stable'. It was not until several months into my pension that I was able to state this due to final adjustments to pensions etc. Tell them that you need them to allocate your remaining taxable allowances over your various revenue streams for the remainder of the tax year. HMRC did this more efficiently than I thought they would have done - BTW contact by phone was fast for me especially when they open in the morning. I did the same in April 2019 so as to get my allowances allocated correctly over my pension payments so as not to pay any income tax for this year(2019/2020) from month 1. Phoning gets things moving quickly from my experience and the online account just confirms what changes have taken place. Don't rely though on HMRC to get things right for your circumstances without making contact with them and have all your figures to hand when you talk to them!
I am currently waiting for HMRC to reconcile my tax account for 2018/2019 tax year due by the end of October as I should receive a small rebate from them! So that has been the only fly in the ointment in my dealings with them over the last 16 months of retirement.