Should i be taxed twice on my personal pension?

Question

i already pay tax on my personal pension through my wages but now my pension provider is taxing it as well. the tax office has notified them to do this. is this right .

many thanks jim.

Answer 1

Aren't pension contributions tax deductable? They always used to be. Otherwise, they would be taxed twice when you start to receive payouts from the scheme.

Answer 2

I assume the personal pension you are earning from is from employment you left ?? and now have another job

In terms of tax you have an individual allowance and when your combined earnings for the year reach that figure you then pay tax on all earnings over that figure

I assume that two different tax offices may be involved as well ?? one where the pension is based and the other for current employment

I think you should put all the details on a letter and write to the tax office for your pension fund and ask them to explain

usually the tax people are correct in what they have applied , but not always so you may get something back

Answer 3

Do you get payslips from your pension provider, or what other documentary evidence do you have that pension is being taxed?

Take photocopies, and send to tax office dealing with your wages. The Government are always changing rules and policies about the taxation of second incomes, and no, you shouldn't be taxed twice.

Your main tax office (and I am assuming here that this is the one dealing with wages) will instruct other tax office what code number to issue to pension payer. It may be done either way, depends on amounts involved. Your pension may have code number that will cover pension amount, with corresponding restriction in wage code, or you may get full tax allowance at job, with code BR (basic rate) at pension. You will then get a refund at one or the other.

It is your tax allowance. If you want it done a certain way, other than what HMRC suggest, they have to act on your wishes, whatever Government policy.