Paying large amount of tax on pension

S

sharkattack

Registered User
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Hi all.

My parents are retired a number of years. So they both get State OAP pension....My father also has a private pension which up to a couple of months around was for around 1000 a month Net. With the small increase in the state OAP in January it seems that he is gone over the 36000 tax free exemption and as a result he the Private pension provider is stopping a large portion of the 1000 Euro as tax - They are stopping 500 Euro approx in tax. Its like they are applying tax without noting the 36K exemption.

I rang tax office to get it clarified and they updated tax but still the pension provider is still taxing me as if I have no exemption.

Do you know what I have to do to resolve this issue?

Or do I need to post this in Tax forum?

Thanks in advance.
 
When the private pension was set up the pension provider may have looked for a tax credit certificate noting their tax reference number. If Revenue have updated this, then the pension provider should also have access to the update.

I'd suggest contacting the intermediary/broker that arranged the private pension, if there is one. Or, get your father to ring the payroll department of the pension provider directly.
 
Check if he is under Week 1 status with regards to his tax credits. When the OAP increased by €5 recently, a lot of people with private pensions got reset to Week 1. This means when payroll in the insurance company deduct the tax credits, they only deduct 1/52th instead of doing it on an accumulative basis.

It is more likely an issue the revenue will fix by having his tax credits assigned to the life company (his new employer) and making sure his tax credits are applied on an accumulative basis.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thanks very much for replies - much appreciated. I'll contact revenue tomorrow as a first step.
 
@SBarrett @GSheehy Opening Poster here - Just a quick update.
I rang Aviva the pension provider and a soon I mentioned that the tax appears incorrect even without giving account details she jumped in and said that they have a bug in there system (or payroll provider they are using has) that is not correcting the tax correctly and that everybody effected will get a full refund in time. Didn't say when it will be fixed but it is high priority...Hope it gets fixed soon as its costing my parents 400 euro a month....
 
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