Countryboy1

I've just received notification that my tax code had dropped from 750 to 464. As I've just reached 65 years of age I thought that it may change, but for the better and not for the worse!
I was under the impression that tax-free allowances had increased so this has come as a bit of surprise. Other than reaching the official retirement age, my circumstances haven't changed, so does anyone know why this code may have dropped?
I intend to ring HMRC, but I thought I'd ask here first.
Thanks,

Biffta

Fred James

If you have just started taking your retirement pension that could be the reason.

As the state pension cannot be taxed directly, if you have any other income such as an occupational pension, the tax due on the state pension will have to be deducted from that pension and the way they do that is to decrease your tax code.

However HMRC have been issuing millions of incorrect coding notices over the last couple of years so it could be a mistake.

Give them a call to check it out. From my experience they are very helpful about sorting it out if it was an error.

If you are in the UK call 0845 3000627 but expect to wait.

Alternatively there is a number for calling from outside the UK which will get you answered quickly 0044 135 5359022

Countryboy1

Thanks Fred, I think you've nailed it!
Bottom line is, if I'd never bothered saving for my occupational pension I'd get my retirement pension tax free, BUT as I did save and to make sure I don't get too 'well off' they'll tax the retirement pension in addition to my other one.
Now if only I could get one of those tax avoidance schemes I read about!
Thanks again.

Brian

Mitzyboy

Ahhhh, The Life of Brian eh?

Savers Stuffed at every turn I'm afraid