DEAR TRICIA

Q I’ve just received a tax rebate and I’ve been taxed on it. Can this be correct? A Are you sure? A tax rebate is exactly that, a refund for overpaid taxes – it’s not taxable. It is usually repaid by either adjusting your tax code or by cheque. I suggest you contact your tax office. Q I worked as a civil servant and paid a reduced rate of national insurance. I have checked my state pension and will get around £20 less per week than the full amount. Is it worth topping it up so I’ll get the full amount? A The main things to consider are: how much is it going to cost you? Is it worth taking a lump sum from your savings to get a few extra pounds a week? How long would it take to get that money back in pension? Also bear in mind that any extra pension income you receive will count towards your annual personal allowance and, added to your works pension, could mean you pay more tax. It’s a matter of doing the sums and deciding if you think the cost versus the gain is worth it. Q I’m in my mid-50s and I’m still working. I want to access a pension pot but I’ve been told this could affect how much I can save into a pension going forwards. Is this true and what are the rules? A Yes, it is. Over-55s who access their pension pots will only be able to contribute £4,000 a year and still automatically qualify for tax relief. Anyone who leaves their pension intact still gets the full £40,000 annual allowance, as long as they don’t go over the lifetime allowance of £1million. Q My wages are paid to me via an umbrella company. HMRC has informed me I underpaid tax last

year because the umbrella firm used the wrong tax code. Do I have to pay it and can I make a claim against the umbrella firm for their error? A

You could try, however mistakes can be made. If you think that your employer has made a mistake which has resulted in the issue of a Tax Calculation (P800) to you, then in some limited circumstances you may not have to pay the underpayment caused by that error. Contact HMRC and find out where you stand and what you can do. Q

I lost my job at the end of last year and I have been getting help to pay

my mortgage interest. A friend has said this benefit is stopping. Will I no longer be able to get help until I get back on my feet? A

If you get Support for Mortgage Interest (SMI) as a benefit, it will stop being paid from April 5. You’ll get a letter soon about the new SMI loan and other options available to you. If go down the route of taking out an SMI loan, you’ll need to repay the money you get, with interest on top, when you sell or transfer the ownership of your home. There are also options to repay your debt much sooner if it is affordable to do so.