Retirement Annuity Coding (RAC) notices issued by Leicester & Northants

So far almost 1 million code numbers have been issued to customers whose annuities will be taxed under PAYE for the first time in April 2007.

This has been a major task and has relied on the co-operation of the Annuity providers and annuitants to enable HMRC to either locate existing tax records or to set up new ones. Because many Providers do not have complete or up to date information about some of their pensioners, HMRC was not always able to initially issue the correct code numbers. A further review is being made to both review the additional information which customers are now providing and to encourage those who may have been paying too much tax to claim repayments.

The issue of such a large number of P2s over a short period meant that not every caller to the helpline was able to speak to an adviser straight away. But now that a more even flow of calls is being received, HMRC is confident that everyone who does either telephone or write in will have their code number reviewed before the start of the new tax year.

We have received feedback that calls are being handled quickly, and extremely efficiently.

Please see further information about Retirement Annuity Coding.