Basically the teachers pensions people are at fault for not taking right amount off. My husband died in April last year and I inherited half his pension. Have not paid tax for years as my income prior to this was well under any threshold-how I am I supposed to know if they have taken off the right amount? I used the sample form to the letter I sent.
Let me start by expressing my condolences for your sad loss.
It is unclear from your question as to when you sent a letter to HMRC. In my experience HMRC take weeks and months to respond to correspondence. You can follow the letter up by telephone or just wait for HMRC to respond which they should do eventually.
The Pension Provider can only calculate tax due based upon the information provided to them from HMRC about your tax code. If your circumstances change, as they have, then it is your responsibility to tell HMRC about this so that they can make the necessary changes to your tax code e.g. adjusting the tax code for multiple incomes.
At the end of a tax year HMRC reconcile the tax situation and send out a P800 tax calculation where the incorrect tax has been paid. This is generally sent out in November each year – so November 2017 for the tax year from 6th April 2016 to 5th April 2017. HMRC will then adjust the tax code for the tax year 2018 / 2019 giving to time to pay any tax that is due.
That is how the system works. I’m afraid it is complicated and HMRC do take time to sort things out.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.