UK tax codings for frozen pensioners in Oz

[Chris Evans]

Hi everyone,

   Some might remember my warning a while ago about UK tax codings for UK pensioners resident in Oz. If you have any other UK income part from your (frozen) state pension, you are quite likely to find that the Pensions Department (DWP) has given the income tax people (HMRC) an incorrect figure for your UK state pension. 

    They frequently give HMRC the full unfrozen pension figure that we should be getting rather than the much small frozen pension. In the case of myself and my wife,  the former is almost twice the latter. It is strange that they do this, as they are the people paying us our miserable pensions, but they evidently do not know how much (or how little ?) they are paying us.

   This of course affects our tax coding, and means that too much tax will be deducted from our other UK income. This year the UK pension people got it wrong again for both of us, but in my case they excelled themselves, telling the tax office that my State Pension for 2025-2026 would be a staggering  fifty six thousand, three hundred and sixteen pounds  (if only that were true !) 

    It is not even a case of them misplacing the decimal point- that figure bears no relation to what I actually get.  It has made my tax coding so high that all of my small occupational pension will be swallowed up in tax. I wonder how long it will take to sort it out, and get my money back ? 

So beware everybody !

Chris Evans

[Michael Goodall]

Hi Chris,

What proof do you have that it is the DWP giving the figures to HMRC please?

This can be stopped by contacting HMRC on +44 191 203 7010 after 8.00 am UK time and advising the correct amount for your tax code and also request that a note is lodged on your tax code file to not increase your pension annually by the increase in inflation because you lice in Australia. You can also claim back the overpaid tax for as many years as possible.

Best regards,

Mike Goodall

Tel:-     +61 8 6364 0859

Mob:- +61 403 909 865

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From: bapa...@googlegroups.com <bapa...@googlegroups.com> on behalf of Chris Evans <lornaandchris...@gmail.com>
Sent: Saturday, 25 April 2026 4:34 PM
To: bapa...@googlegroups.com <bapa...@googlegroups.com>
Subject: [bapanews] UK tax codings for frozen pensioners in Oz

 

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[Chris Evans]

Hi Mike- 

Thanks for your advice. It is really a case of DWP and HMRC each blaming the other for this mess. I know that in theory one can telephone HMRC at the appropriate time, but I have experienced incredibly long waiting times on hold, and then get passed from one department to another.   When I wrote to DWP last year  to complain that they had got it wrong yet again, their letter in reply included this admission:

 (I quote): "It is true that when a customer is living in a country where the State Pension is not uprated, the calculation of their annual pension by HMRC can be incorrect .To counter that situation, the customer needs to contact DWP to request a statement reflecting they are not receiving the annual increases in state pension. The customer then needs to provide HMRC with the DWP annual statement for it to calculate their correct tax code. I am advised that a statement needs to be requested each February to allow sufficient time for it to be processed, and for customers living in Australia to receive it by post- it cannot currently be sent by email..."  When I suggested that it would be far simpler for them (DWP) to contact HMRC direct to put things right, they said that was quite impossible, and it was my responsibility to do it as described above. There has to be a better way ?   Chris. PS: I notice in my original message I said the coding was for the year 2025-2026. In fact in was for the current year of course (2026-27), and we do not receive the codings until after the tax year has already started, because they now send them surface mail !

   

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[Michael Goodall]

Hi Chris,

I'm certain that it is the HMRC just being too lazy to realise that they are writing to someone in Australia on a frozen pension, or just because they don't even know about the legal discrimination from the UK Government.

It is up to us to be aware and notify everyone so that they are not caught out and paying tax on income they have never received. Also check and claim for earlier years, it is your pension they could be stealing!!!

All you require when calling the UK is a copy of your original pension letter from the International Pensions Centre (as well as your National Insurance Number and address) or if you were claiming your pension before you left the UK their revised letter after you arrived in Australia and notified them of your change of address.

The change of address often is missed and the IPC send out 'Life Certificate' on a random basis to the last address they have on file for people. If you have moved home and not notified the IPC your letter might never arrive with you and your pension stopped.

Best regards,

Mike Goodall

Tel:-     +61 8 6364 0859

Mob:- +61 403 909 865

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From: bapa...@googlegroups.com <bapa...@googlegroups.com> on behalf of Chris Evans <lornaandchris...@gmail.com>

Sent: Sunday, 26 April 2026 6:07 PM
To: bapa...@googlegroups.com <bapa...@googlegroups.com>
Subject: Re: [bapanews] UK tax codings for frozen pensioners in Oz

 

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