P60s and tax codes: Your questions answered!


April means the beginning of a new tax year and the arrival of all sorts of financial, tax-related paperwork through your letterbox. Pension statements, your P60, or a letter informing you about your tax codes could be among these.

In this short video, Pete Matthew explains why your tax code might change and what this might mean for you.

All companies that pay out pension benefits are required by law to send you this information. But when it all arrives at once it’s understandable if it can all feel a little overwhelming. To help put your mind at ease, we've put together a list of common questions that you might have about P60s and tax codes.

At Just we issue P60s to both our annuity and Flexible Pension Plan customers. Most of these frequently asked questions will relate to both of you, but sometimes the answer will be different depending on what customer you are. In that case we will tell you which answer applies to the P60 for annuities or for our Flexible Pension Plan.

What is a P60?
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The P60 we’ve sent you shows the total amount of income you’ve received from, and any tax you’ve paid from, your Just Retirement policy/ policies or plan(s) for the tax year just gone.

Why have you sent me a P60?
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By law, we have to send you a P60 form at the end of each tax year. You may need it to:

  • complete a tax return, if this applies to you
  • claim back any tax you've overpaid, or 
  • apply for tax credits. 

Even if these don't apply to you, it's still a good idea to keep your P60 in case you need it.

Why has my tax code changed?
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Tax codes usually change at the beginning of each tax year to reflect the changes in personal allowances and tax thresholds. However, your tax code may also change during the tax year if there have been recent changes to your circumstances.

For example, your tax code may have changed if you've recently:

  • started receiving your State Pension
  • started receiving a taxable benefit (for example State Pension or Jobseeker’s Allowance)
  • finished work or started a new job
  • started receiving other income, or
  • applied for the marriage allowance.
I think I’m on the wrong tax code. How can I get this changed?
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Please contact HM Revenue & Customs (HMRC) to confirm this as we can only use tax codes issued by them. HMRC's contact details are below: 

HMRC phone number:
0300 200 3300

HMRC address:
HM Revenue & Customs
Pay As You Earn
BX9 1AS

You’ll need to quote your National Insurance number when you contact them. You may also need to quote our PAYE reference.

If you have an annuity with us, then the PAYE reference you will need is 581/JZ59145.

If you have a Flexible Pension Plan with us, then the PAYE reference will be 120/TB23996.

I’m not a tax payer...why have I got a code?
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All UK residents are each assigned a tax code by HM Revenue & Customs (HMRC), even if you are a non-tax payer. If you’d like to know more, please contact HMRC for further information.

I have a question about the amount of tax taken from my annuity income. (Annuity customers):
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If you have a question about how much tax you’re paying, please contact HMRC using the details below. The amount of tax taken from your income is set by them. 

HMRC phone number:
0300 200 3300

HMRC Address:
HM Revenue & Customs
Pay As You Earn
BX9 1AS

You’ll need to quote your National Insurance number when you contact them. You may also need to quote our PAYE reference.

If you have an annuity with us, then the PAYE reference you will need is 581/JZ59145.

If you have a Flexible Pension Plan with us, then the PAYE reference will be 120/TB23996. 

I have a question about the amount of tax taken from one of my payments I received from my Flexible Pension Plan. (FPP customers):
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If you have a question about how much tax you’ve paid on one of the following payments: 

  • lump sum payment
  • one off single payment
  • regular income payments

Please contact HMRC using the details below as the amount of tax taken from your account is set by them.

HMRC phone number:
0300 200 3300

HMRC address:
HM Revenue & Customs
Pay As You Earn
BX9 1AS

You’ll need to quote your National Insurance number when you contact them. You may also need to quote our PAYE reference. The PAYE reference will be 120/TB23996.

I’ve paid too much tax. How do I get a rebate?
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We can only provide a rebate of tax for the current tax year. HMRC can arrange for rebates to be made for previous years. Usually you can arrange this by sending them a copy of your P60 together with details of any income you have had in the same tax year. The contact details are shown below:

HMRC phone number:
0300 200 3300

HMRC address:
HM Revenue & Customs
Pay As You Earn
BX9 1AS

You’ll need to quote your National Insurance number when you contact them. You may also need to quote our PAYE reference.

If you have an annuity with us, then the PAYE reference you will need is 581/JZ59145.

If you have a Flexible Pension Plan with us, then the PAYE reference will be 120/TB23996.

Am I likely to receive a different payment amount in the new tax year?
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HM Revenue & Customs (HMRC) look at your tax situation towards the end of each tax year, when the amount of tax you pay is reviewed. They will send us and you a new tax code notice, which may affect the amount of income actually paid into your bank account.

How can I contact HM Revenue & Customs (HMRC)?
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You can contact HMRC using the options below: 

Phone number:
0300 200 3300

Address:
HM Revenue & Customs
Pay As You Earn
BX9 1AS

You’ll need to quote your National Insurance number when you contact them. You may also need to quote our PAYE reference.

If you have an annuity with us, then the PAYE reference you will need is 581/JZ59145.

If you have a Flexible Pension Plan with us, then the PAYE reference will be 120/TB23996.

You don't have my correct details. How can I change them?
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Please contact us in writing at the address below or by phone on 01737 233297 to tell us about any changes to your contact details.

Our address: 
Just
Vale House
Roebuck Close
Bancroft Road
Reigate
Surrey
RH2 8EH

Why have you only sent me one P60 when I have more than one policy/ arrangement with you?
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If you're an annuity customer: 

Although we may have received amounts from more than one company or pension plan, and each has a separate policy number, we combine these so that we can make a single payment to you. Because you receive a single payment from us, we produce one P60.

If you're a Flexible Pension Plan customer: 

Although we may have received amounts from more than one company or pension plan, and we may have allocated these into separate arrangements, we combine any income into a single payment to you. Because you receive a single payment from us, we produce one P60.

I haven’t received my P60 from Capita or Just yet.
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Don’t worry! If you haven’t yet received your 2017/2018 P60 from us (and you usually receive it from us directly), then please call us on 01737 233297.

Some of our plans are provided by Capita. If you receive payments from them on behalf of us, then please call 0345 120 2837.

I've lost my P60, how can I get a copy?
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If you've lost your P60 and need a copy, please call us on 01737 233297 to ask for one.

Are the ‘Pension paid by us’ amounts displayed on the P60 before or after tax?
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There are three amounts given.

  • ‘Pension paid by us’ is the amount of income before tax.
  • ‘Tax Deducted’ or ‘Refunded’ is the amount of tax taken from your income or refunded to you.
  • ‘Pension Less Tax’ is the income we paid to your account after tax. 
What do you mean by ‘Pay’ and ‘Tax Deducted’ ‘in previous employment(s)’?
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If we received your P45 form from your previous employer or pension provider, and it related to the tax year in question, we have to quote this information on your current P60 form. HM Revenue & Customs (HMRC) may also give us this information.

I receive payments from Capita. Who should I contact?
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Some of our plans are provided by Capita. If you receive payments from them on behalf of us, then please call 0345 120 2837.

What period does the P60 cover?
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Your P60 covers the tax year beginning on 6 April 2017 and ending on 5 April 2018.

I receive payments from Just. Who should I contact?
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That's us! If you need to speak to us, please call 01737 233297.

What is the lifetime allowance?
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For annuity customers: 

The lifetime allowance is the maximum amount of pension savings you’re allowed to build up before you have to pay a tax charge. For the 2017 to 2018 tax year, the lifetime allowance was £1 million. The lifetime allowance for the 2018 to 2019 tax year is increasing to £1.03 million. A different lifetime allowance may apply if you have applied for transitional protection.

When payments begin from your company or pension plan, the value of your pension is tested to work out how much of the lifetime allowance has been used up.

The result of this test is expressed as a percentage and shown every year on your P60. Although the lifetime allowance may change from year to year, the lifetime allowance percentage shown on your P60 will stay the same, unless you buy another policy from us.

For Flexible Pension Plan customers: 

The lifetime allowance is the maximum amount of pension savings you’re allowed to build up before you have to pay a tax charge. For the 2017 to 2018 tax year, the lifetime allowance was £1 million. The lifetime allowance for the 2018 to 2019 tax year is increasing to £1.03 million. A different lifetime allowance may apply if you have applied for transitional protection. 

From time to time, you may set aside some of the money in your plan for income drawdown (also known as 'crystallisation') or take an uncrystallised funds pension lump sum (UFPLS) from your plan. Each time you do this, the amount you set aside or take from your plan is tested against the lifetime allowance.

The result of this test is expressed as a percentage, and is then added to the total percentage from any previous lifetime allowance tests. Each year, the total percentage of the lifetime allowance you've used is shown on your P60. This percentage represents the total amount of money you've set aside and all the UFPLS you've taken since the start of your plan, not just for the year just gone.

Why have you included lifetime allowance details on my P60?
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If you're an annuity customer:

By law, we have to send you a statement every year, confirming the lifetime allowance you used when you bought your policy (or policies). You may be asked to provide this if payments begin from another company or pension plan. 

If we’ve left the box blank, we are waiting for your previous pension provider to tell us what this figure is. They’ll also tell you what the figure is.

There are some scenarios where the lifetime allowance doesn’t apply, for example if your annuity started before 6 April 2006. If this is the case, the box will show ‘n/a’.

If you're an Flexible Pension Plan customer:

By law, we have to send you a statement every year confirming the lifetime allowance you've used since the start of your plan. You may be asked to provide this if you start taking money from another pension plan.