HMRC got it wrong again?

[IJWS15]

I retired and am now contracting so have a number of pensions and income from work.

HMRC just updated my tax codes and I have a “K3nnn X” code allocated to a pension that pays about 10k a year. They have not allocated this code to the main income.

I am tempted to sit back and wait while making sure I keep money to pay the inevitable demand for unpaid tax next year.

Or have I got this wrong?

[Eric Mc]

Are you receiving State Pension?

[IJWS15]

No, just 4 DB pensions.

[Eric Mc]

As a contactor are you -

paid a salary under the PAYE system from the organisation you are providing your services to?

paid a salary and/or dividends etc from an agency?

operating through your own limited company?

operating as a bona fide sole trader?

[IJWS15]

Eric Mc said:

As a contactor are you -

paid a salary under the PAYE system from the organisation you are providing your services to?

paid a salary and/or dividends etc from an agency?

operating through your own limited company?

operating as a bona fide sole trader?

Paid a salary and bonus from an umbrella co who provide my services to the end user. The umbrella co pay employers NI, apprenticeship levy, make employer pension contributions into my SIPP and deduct PAYE and employee NI and their fee before paying me.

The bonus allows the contract salary to be minimum wage