HMRC Tax Code Error - War Pensions, SIP

If, like me, you received a letter today from HMRC to inform you of your Tax Codes for 2020-2021 then be sure to give them a call as it's a mistake and it's applied a Tax Code to Service Invaliding Pensions that are Non Taxable.

The operator checked my details and informed me that it was an automated update that puts all forces pensions in the same category. Once rectified they said that a new letter would be sent with the correct NT Tax code applied to my SIP.
 
If, like me, you received a letter today from HMRC to inform you of your Tax Codes for 2020-2021 then be sure to give them a call as it's a mistake and it's applied a Tax Code to Service Invaliding Pensions that are Non Taxable.

The operator checked my details and informed me that it was an automated update that puts all forces pensions in the same category. Once rectified they said that a new letter would be sent with the correct NT Tax code applied to my SIP.
Yes I received that same and been chasing around the houses. Unfortunately (for the first time with HMRC) I got the chocolate fireguard handling my call who insisted ALL pensions are taxed.

Mine is a Service Attributal Pension, which makes me worry a bit if yours is a SIP.

I‘ve spoken to the Kidderminster VA who will speak to Equinity Paymaster.
 
If, like me, you received a letter today from HMRC to inform you of your Tax Codes for 2020-2021 then be sure to give them a call as it's a mistake and it's applied a Tax Code to Service Invaliding Pensions that are Non Taxable.

The operator checked my details and informed me that it was an automated update that puts all forces pensions in the same category. Once rectified they said that a new letter would be sent with the correct NT Tax code applied to my SIP.
At the turn of the century, HMRC were regularly winning awards for customer service.

Since 2013 every dealing I have had with them has been laborious, error prone on their part, and costly on mine.

I have come to understand their stance to be that we taxpayers need to be tax experts, because that is no longer part of any HMRC job description, nor does their business lexicon include phrases like "sorry, we made a mistake".
 
At the turn of the century, HMRC were regularly winning awards for customer service.

Since 2013 every dealing I have had with them has been laborious, error prone on their part, and costly on mine.

I have come to understand their stance to be that we taxpayers need to be tax experts, because that is no longer part of any HMRC job description, nor does their business lexicon include phrases like "sorry, we made a mistake".
We have self-assessed for about 20 years, having had rental properties and as a SP I used to find IR/HMRC particularly helpful. However I just received a penalty notice for not submitting a tax return for 18/19 in time (which is odd, given that I was paid a rather substantial refund in December...). I have spent the better part of three hours trying to get them on the phone with no success.

Secondly, I have just received notification that I am to receive a War Pension medical assessment (as I have a Service Invaliding Pension as well). What does this medical consist of, and what/how should I prepare for it?
 
However I just received a penalty notice for not submitting a tax return
I had one of those.

I didn't submit one, because their adviser told me - over the phone - that my circumstances did not require me to.

a. He was wrong (some clause about family credits that didn't feature on the main HMRC web page on the subject), and:

b. Mysteriously, they had no record of that conversation having taken place.
 
I’m now completely lost between SAP and SIP, I thought I knew, but having just done a t’internet search, am now confused.

It used to be that SIP was taxed, SAP was not.

Does SAP still exist or was it phased out when AFCS was introduced.

Either way my pension (SIP, SAP, Wibble or whatever it’s called should be tax free).
 
We have self-assessed for about 20 years, having had rental properties and as a SP I used to find IR/HMRC particularly helpful. However I just received a penalty notice for not submitting a tax return for 18/19 in time (which is odd, given that I was paid a rather substantial refund in December...). I have spent the better part of three hours trying to get them on the phone with no success.

Secondly, I have just received notification that I am to receive a War Pension medical assessment (as I have a Service Invaliding Pension as well). What does this medical consist of, and what/how should I prepare for it?
Not knowing your physical limitations, I can only offer the general advice that-when the letter arrives giving you date, time and place-inform them you insist on a home assessment.

They will (probably) tell you that this is not possible.

You will respond with words to the effect that ,unfortunately, their assessor will spend a lonely hour at the nominated centre.

They will then arrange a time and date at your home. :cool:
 
I had one of those.

I didn't submit one, because their adviser told me - over the phone - that my circumstances did not require me to.

a. He was wrong (some clause about family credits that didn't feature on the main HMRC web page on the subject), and:

b. Mysteriously, they had no record of that conversation having taken place.
I was told everyone has a trading and miscellaneous allowance of £1000 per year that does not require a declaration. If it goes above £1000 everything needs to be declared.

 
I was told everyone has a trading and miscellaneous allowance of £1000 per year that does not require a declaration. If it goes above £1000 everything needs to be declared.

Not seeing the relevance. I was on PAYE for both my full-time salary, and for my Army pension. I queried being told I had to Self Assess precisely because I was no longer self-employed (let alone trading even in the loosest sense).
 
Not knowing your physical limitations, I can only offer the general advice that-when the letter arrives giving you date, time and place-inform them you insist on a home assessment.

They will (probably) tell you that this is not possible.

You will respond with words to the effect that ,unfortunately, their assessor will spend a lonely hour at the nominated centre.

They will then arrange a time and date at your home. :cool:
The letter advises me that Doctor Unpronounceable will make a home visit on Monday...
 
The letter advises me that Doctor Unpronounceable will make a home visit on Monday...
Ensure you have a witness who has pen & notebook to hand or even better a method of recording all conversations from the point of entry of said Doctor i.e. web cam, gopro, mobile phone etc.

Ask said Doctor for his registration number and check the database before you start to answer any questions. If details fail to appear then show him to the door. You can also check to see if the said Doctor is barred from practising and the reason why.

Drink driving, etc is normally a good indication of the quality of the so called medical professional.

Checking the register whilst the said Doctor is there does not half upset the 'naughty ones'.
 
I’m now completely lost between SAP and SIP, I thought I knew, but having just done a t’internet search, am now confused.

It used to be that SIP was taxed, SAP was not.

Does SAP still exist or was it phased out when AFCS was introduced.

Either way my pension (SIP, SAP, Wibble or whatever it’s called should be tax free).
I had the same confusion Dingerr, until Veterans UK explained the SAP had been renamed to the Armed Forces Compensation Scheme Annual Compensation Scheme. No idea why!
 
I had the same confusion Dingerr, until Veterans UK explained the SAP had been renamed to the Armed Forces Compensation Scheme Annual Compensation Scheme. No idea why!
That makes no sense at all as I receive a pension and Compensation (Guaranteed Income Payment)
 

jg505

Old-Salt
I've not received any recent HMRC tax code but, just in case, I'm getting my ducks in a row.

I get my Armed Forces Pension, taxed as one should but I also receive a 20% disability War Pension (WP).

Are we saying that I need to be careful that HMRC haven't included my WP as a taxable income?

Thanks in advance.
 
I've not received any recent HMRC tax code but, just in case, I'm getting my ducks in a row.

I get my Armed Forces Pension, taxed as one should but I also receive a 20% disability War Pension (WP).

Are we saying that I need to be careful that HMRC haven't included my WP as a taxable income?

Thanks in advance.
Im saying be careful because HMRC.

Full stop.

They're a junk institution, hollowed out, demoralised and dysfunctional. Check everything they tell you, and keep evidence
 
HMRC don’t understand the difference between compensation payments and pension payments.

From my conversation they also don’t understand that some forces medical pensions are tax free.
 
I’m now completely lost between SAP and SIP, I thought I knew, but having just done a t’internet search, am now confused.

It used to be that SIP was taxed, SAP was not.

Does SAP still exist or was it phased out when AFCS was introduced.

Either way my pension (SIP, SAP, Wibble or whatever it’s called should be tax free).
Mine is a SIP as it's my service pension under AFPS 75 made NT from my War Pension that was awarded at the time of my MD. Not sure about SAP though.
 

2000AD

Old-Salt
I had this discussion with HMRC back in 1997 when I found out I was being taxed on my SIP ans war pensions.
It took ages on the phone and a dig out of the relevant service publication that I kept a copy of to eventually persuade the bloke on the other end of the phone of the situation.
I won and ended up with the backdated tax back
I'll be very pissed off if I have to go through the same bolox again
 

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