Vladimir_Ilyich_Crab
War Hero

Yesterday I received a letter from Veterans UK telling me I exceeded the 'standard tax-free pensions savings limit of £40000 for tax year 2017/18'.
This came as a surprise on many levels. First, I thought my pension was non-contributory and as part of that, someone else administered it and made sure it was paid taxed and matured appropriately, until such time as I can draw it. Let's call them for want of something better, 'the Pension Pixies'.
Second, I had to use the 11-page letter and extract information to put into an online tax calculator, using a 37 slide .ppt online as a guide. Linked to the above, I thought the Pension Pixies did all that.
Third, the Annual Allowance Limit, detailed in the 11-pager, remained at £40k except for between 6 Apr 15 and 8 Jul 15 - when it is listed as £80k. Why should it have bounced up for a 3-month period?
Fourth, the pension input amount seems to have flexed in the last 4 years. Started at £10k, went down to £9k, and then went massively up until it sits over £50k. I (clearly erroneously) thought it would just tick upwards at steady amounts annually linked to a magical figure of RPI/CPI (whichever is the cheapest rate the government can use to make increases).
Had the calculator said I owed anything, I had 3 options to make payment - scheme pays, adjust your tax code, or pay HMRC directly. Again, I thought the Pension Pixies did all this.
In the event, the figure owed was £0 - which confuses me as to why I even received this letter. One of the guides hinted it may be linked to having cleared the 16 year point.
One question I have not resolved is, had I owed tax, why should I be self calculating about by non-contributory pension, as opposed to simply waiting for the taxman to send me a bill for x and then paying it?
Anyone else encountered this - it has made me think I may need to consider doing some advanced adulting, and I will need to drink to cope with this.
This came as a surprise on many levels. First, I thought my pension was non-contributory and as part of that, someone else administered it and made sure it was paid taxed and matured appropriately, until such time as I can draw it. Let's call them for want of something better, 'the Pension Pixies'.
Second, I had to use the 11-page letter and extract information to put into an online tax calculator, using a 37 slide .ppt online as a guide. Linked to the above, I thought the Pension Pixies did all that.
Third, the Annual Allowance Limit, detailed in the 11-pager, remained at £40k except for between 6 Apr 15 and 8 Jul 15 - when it is listed as £80k. Why should it have bounced up for a 3-month period?
Fourth, the pension input amount seems to have flexed in the last 4 years. Started at £10k, went down to £9k, and then went massively up until it sits over £50k. I (clearly erroneously) thought it would just tick upwards at steady amounts annually linked to a magical figure of RPI/CPI (whichever is the cheapest rate the government can use to make increases).
Had the calculator said I owed anything, I had 3 options to make payment - scheme pays, adjust your tax code, or pay HMRC directly. Again, I thought the Pension Pixies did all this.
In the event, the figure owed was £0 - which confuses me as to why I even received this letter. One of the guides hinted it may be linked to having cleared the 16 year point.
One question I have not resolved is, had I owed tax, why should I be self calculating about by non-contributory pension, as opposed to simply waiting for the taxman to send me a bill for x and then paying it?
Anyone else encountered this - it has made me think I may need to consider doing some advanced adulting, and I will need to drink to cope with this.