HMRC tax codes
Posted on: 30/04/2021
We’re aware that some of our pensioner members may be concerned over recent changes to their tax codes.
We know that many of you will have received a tax code change notice in March from HMRC. This was correct as we entered into the new financial tax year, and this was applied correctly to your April pension.
Everybody’s income circumstances are different but please be assured that in terms of your Nationwide Pension Fund income, any tax you’ve paid in April is correct and you’ll have been paid the correct amount of pension due to you.
Tax code error
We also know that some of you will have very recently received tax code change notices, following your pension payment in April.
In April we transitioned to a new payroll system. This has brought an error to our attention and for some, this has prompted HMRC to believe you have two incomes from Nationwide and therefore additional tax would be due.
This is a mistake in our system and we’re sorry this has happened so we’re going to put it right.
How we’ll correct the mistake
We’re currently working with HMRC to make sure that by the next pay day in May, your records will hold the correct information for you.
Nationwide will not be making any changes to your tax information while we’re resolving this issue in our systems to make sure that in May, you’ll continue to receive the correct pension and will pay the correct amount of tax in respect of your Nationwide Pension Fund income.
Following May pay day, HMRC will then reassess your tax code based on the corrected data from the Fund, which may result in a further tax code notification being issued to you. By the time you’re paid again in June, your tax code information in respect of the Fund will be correct.
Again, we’re very sorry if this has caused any concern but we kindly ask you to bear with us as we put in place all the measures to correct the problem.