Coding Notices adjusted for pensions

Coding Notices adjusted for pensions

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Which bit of the legislation allows HMRC to adjust a PAYE coding notice for state pensions?

I thought that if I have several employments, I could choose which one to use my allowances against.

So how come I can't choose not to have my pension deducted from my PAYE coding?

Afterall, they pay the pension gross, so surely if there's tax to pay on it, it would be 31st January 2008, not during the year to 5th April 2007? (which is the effect of pushing it through the coding notice)

It seems illogical that they can do this!

Thanks
Greg Heyes

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By User deleted
01st Dec 2006 10:14

The legislation...
...is found in The Income Tax (Pay As You Earn) Regulations 2003 (Statutory Instrument 2003/2682).

Regulation 14(1) states:

"If the Inland Revenue determine a code under this regulation, they must have regard to the following matters so far as known to them -

(b) any PAYE income of the employee...;"

PAYE income is defined in Regulation 2:

""PAYE income" has the meaning given in section 683 of ITEPA;",

and section 683 of ITEPA at subsection (3) defines PAYE Income as including "United Kingdom social security pensions".

HMRC therefore have the authority to adjust the PAYE Coding for the State Pension.

Hope this helps.

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