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Pension problem

09 May 2007
Issue: 4107 / Categories: Forum & Feedback

My client is retired and receives income from an occupational pension, his state pension and he also has income from self employment. Until now, the state pension has not been coded out in his occupational pension and tax on that source has instead been collected under self assessment along with the liability on his income from self employment.

My client is retired and receives income from an occupational pension his state pension and he also has income from self employment. Until now the state pension has not been coded out in his occupational pension and tax on that source has instead been collected under self assessment along with the liability on his income from self employment.
HMRC now insist that under Statutory Instrument S1 2003 No 2682 Reg 14(1)(b ) the state pension must be included in his PAYE code number. Initially the HMRC officer  dealing with our client advised us of the statutory instrument but said that as a concession they would continue to allow the liability on the state pension to be paid under self assessment. A new officer now says that this cannot be done and that they have a duty to try and collect the tax...

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