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Discharged very soon a couple of questions

  • Thread starter Thread starter Ruddyduck
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Ruddyduck

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As per the thread title, I'm out of a blue suit very soon - and everything is going as planned so far so tickety boo - clearance, resettlement, medical, dental - all sorted...

Pensions - I received my forecast, they say it is not fully worked out until the last day of service, so you don't know exactly what you are getting, is the pension forecast (pre discharge) quite close to what you do get?

Having never been a pensioner before... when do they kick in? Mine is immediate, has anyone had to wait a couple of months, say, for their first payment?

How long does it take for final pay to be paid? I have heard bad stories of it taking up to a month, and they told me that in PSF... any experience guys?
:PDT_Xtremez_35:
 
My lump sum was in the bank in three weeks from the last day and pension on the last day of the month I got out (out on 5th of month paid on 30th) so I have nothing but praise for those guys.

Its about the only thing they got right towards the end.

I had put my details into that pension calculator but found my actual pension was slightly higher.

Be aware that your tax code will change to BR. Basically your tax free entitlement will be swallowed up by the pension paid and they will lump together any pay from your new job with the pension and tax it all at 20%.

Makes my blood boil having to pay tax on a pension but hey ho thats tax Britain for you!

You got a job lined up?
 
When I left I elected for maximum commutation of my lump sum. When the cash arrived it was a wee bit light, they hadn't added the commutation. However a couple of phone calls and it was resolved in a few days!:PDT_Xtremez_19:
 
Get Tae said:
Be aware that your tax code will change to BR. Basically your tax free entitlement will be swallowed up by the pension paid and they will lump together any pay from your new job with the pension and tax it all at 20%.
Click to expand...

I might be a complete biff and read that all wrong, but are you telling me that you are paying basic rate on your pension AND your day job? Where is your tax free allowance going?

If I have read this right it would appear you are due for a tax rebate. I am paying BR on my pension (and yes that really does grip my poo) but I have a 3 numbers + one letter tax code for my day job.

So for instance, if you had a tax code of 123L the first £1230 you earn in the tax year would be tax free (the letter means something as well but that isn't important here). BR means every penny you earn in the year is taxed. Therefore you would be losing out on 20% of £1230 every year. I have used 123L as an example, but in reality I wouldn't be surprised if your tax code was in the 600's.

Employers have to use BR if they don't get a P45/P60 but it is up to you to chase your P45/P60 then get your employer to apply the information correctly and also chase HMRC for a rebate on your overpaid tax.

Of course I am as thick as a horse on toast and may have misread your post in which case ignore all after 'I might be a complete biff'

Finally if you need to speak to HMRC, go to the website and find your local office. Then only ever call them on the number it says is for calling from overseas. You will get dealt with much quicker and it won't be costing an arm and a leg. Sure they get a bit shirty because they can see you are dialling from the UK but I have never been redirected yet.

Jimps
 
Jim_P_Pulfrew said:
I might be a complete biff and read that all wrong, but are you telling me that you are paying basic rate on your pension AND your day job? Where is your tax free allowance going?

Jimps
Click to expand...

In my case my tax free allowance is applied to my pension, so I think thats what he meant. BR is then applied to my new jobs salary (which makes me cry when I see the pay chit:0 )

To the OP - my pension was actually slightly higher than the original forecast as well (but not by much, so don't get too excited!). All sorted by JPAC/Xfanity very quickly as well - lump sum in the bank within a week of last day of service, and first pension payment 20 days after.
 
KS is right JP. I dont have any other tax code but PR however my accountant deals with all that and I did recieve a tax rebate this year of over 500 quid so I guess it all pans out in the end.

I am now working self employed in the UAV area so hopefully wont pay anywhere near as much tax this year as all my travel etc is tax deductable, NICE!
 
Same here pension taxed at BR 20% off the lot, new job also taxed at BR 20% off the lot. The taxman said this saves him from taxing any excess pay at 40% but even so every now and then some robbin ******* from the tax office sends me a bill 'cos they reckon I still haven't paid enough - robbin ***** - and I bet they give it all away to some work shy *****
 
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