DK1966
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RE: Tax on state pension and work pensions in the first year of retirement
I recently received a tax calculation from HMRC for 2024/2025 in which they have included benefits in kind as a deduction against my personal allowance. I left my former company at the end of August 2023 when these benefits ended, so why are they included in the next tax year's figures. The HMRC have also added a car fuel benefit of over £8000, something I have never had with that company having paid for any private mileage on a monthly basis. So added together, including state pension, it comes to over £30,000 in deductions giving a tax code of K1660. They know I have left the company, they know I do not still receive any BIKs and they've even added one I have never had. You couldn't make it up. -
benefit in kind
I have recently retired and returned my company car. The HMRC continues to keep the car benefit in kind tax deduction on my records and this added to full state pension (even though I will be taking half that amount) takes my tax liability into a negative amount generating a K code. HMRC insist they have to keep the bik until the end of the tax year even though I am up to date tax wise on the car when handed back. It seems I will be paying tax on a vehicle I no longer have and for part of an income (state pension) I am not receiving. Can someone explain their reasoning please?