They are being advised to contact HM Revenue and Customs immediately to avoid having UK tax deducted from their annuity payments from April, when a new pension law comes into force there. Although Jersey pensions are taxable only in the Island, up to 5,000 pensioners in the Channel Islands with a Norwich Union policy have received PAYE notices from the UK tax authority because their names were mistakenly given to HMRC by their pension provider. Norwich Union has told HMRC to delete these names from their database and apologised for the error but some Islanders fear they will lose money while the tax authority works through the names, which it says can only be done manually.
The Heart of Island Life
