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Post paye retirement; will I need to do SA?

Not had to do SA for donkeys' years; will retirement force me to so do?

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I haven't been required to do a SA for years; all my income has been either PAYE or DWP sickness/JSA payments.  I have effectively retired from (commercial) accountancy and draw my state pension in January.  I also have two private pensions, one a draw-down.

I have never had to do tax, other than PAYE and checking auditors comp figures against the accounts, hence me taking the advice of my AWeb colleagues.  Will I have to do SA after January or will the DWP and pension company returns cover it?  Any interest is below the threshold.

 

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By SteLacca
17th Aug 2017 11:28

Provided the pension payers do their job right, it's just PAYE the same as earnings, and so shouldn't give rise to an obligation to do PAYE, unless HMRC decide differently based on their flawed interpretation of the legislation.

At the moment, I wouldn't worry about it.

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By Duggimon
17th Aug 2017 11:35

The pension providers should get the required tax codes issued to them and deduct tax from your gross pension payments. Worth doing a quick check that your totals are around what you'd expect once the P60s are in each year but provided there's no issue there then there's no reason to do a SA return.

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By Chris Mann
17th Aug 2017 11:35

I think I can safely say that you won't be required to complete a self-assessment tax return.

Dependent upon the level of your overall income, I think you can safely assume that any liability which you might have, to income tax, will be appropriately dealt with via a coding adjustment.

In saying all of this, just keep a weather eye on any notices of coding, which you might receive. HMRC do make mistakes, from time to time and, absolutely nothing they do, these days, is foolproof.

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By Vaughan Blake1
17th Aug 2017 11:43

You won't have to do a SATR on the basis that you have only a state pension and two other pensions covered by PAYE.

BUT, if neither pension is large enough to use all of your spare PA, or if the spare PA is set against a small pension which can't fully absorb it, the tax will inevitably be wrong! Otherwise PAYE should sort it out for you, but do check your PAYE codes and 'do the math' at the end of each tax year.

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By Richard Willis
17th Aug 2017 19:33

Because I have been in and out of work over several years I have overpaid tax a couple of times. To be fair HMRC seem pretty good, if a little tardy, at paying it back. However having 'done the sums' a 'phone call usually speeds up the process.

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By Cheshire
17th Aug 2017 20:32

Just another shout out to watch the tax codes having seen HMRC make a mess with the coding of two pensions.

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