Taxing State Pension

[Jim Hardie]

7 hours ago, crookesey said:

Come 10th April my State Pension will be £13,290 p/a, the Tax Free Allowance stays at £12,570, thus making my State Pension subject to taxation. As it is I avoid this having transferred 10% of my Wife’s allowance to me, but there must be few million folk who don’t have a spouse. And where were Labour’s objection to this at the Budget?

Are you on £13290 because you deferred it for a year or two? Mine is £11530 so won’t be paying any tax (yet).

[Al Bundy]

9 hours ago, Palomar said:

So you might have to pay £144 a year! Meh

Yet some cry about the 1.29p per year towards the sovereign grant.

[crookesey]

8 hours ago, Jim Hardie said:

Are you on £13290 because you deferred it for a year or two? Mine is £11530 so won’t be paying any tax (yet).

No, commenced age 65

 

[crookesey]

11 hours ago, Palomar said:

So you might have to pay £144 a year! Meh

I’d much rather you pay it than me, it might just satisfy your boredom. 😉

[Palomar]

7 hours ago, Al Bundy said:

Yet some cry about the £1.29 per year towards the sovereign grant.

Or indeed the £0.01 one-off cost for a memorial to the Muslim soldiers who fought for our freedoms.

[El Cid]

On 07/03/2024 at 20:49, Palomar said:

So you might have to pay £144 a year! Meh

I was listening to someone talking sense today, scrap the 8% National Insurance and put an extra 8% on income tax, I believe Sunak is a supporter of this.

Then everyone with an income above £12,570 would pay the same rate.

[Allen]

3 hours ago, El Cid said:

I was listening to someone talking sense today, scrap the 8% National Insurance and put an extra 8% on income tax, I believe Sunak is a supporter of this.

Then everyone with an income above £12,570 would pay the same rate.

Brilliant….having worked and paid taxes all my life…I reach retirement.

No more national insurance to pay, and no tax.

Just live on the small state pension.

 

UNTIL ….some rich conservative politician decides to freeze the tax free limit at £12570.

Oh and we’ll look good if we increase the pension by around 8%.

We’ll give it with one hand..and take it back with t’other..

 

[Anna B]

I never get any paperwork regarding my pension, it's simply paid automatically into my bank account. Sorry to show my ignorance, but is tax (if any) on it deducted at source, or do the recipiants have to faff about paying it?

[HeHasRisen]

5 minutes ago, Anna B said:

I never get any paperwork regarding my pension, it's simply paid automatically into my bank account. Sorry to show my ignorance, but is tax (if any) on it deducted at source, or do the recipiants have to faff about paying it?

How it would likely work in this situation is after the tax year is over, you would receive a simple tax assessment, showing an amount to pay, and you would then pay it.  Would be no need to do a self assessment.  

[YorkieontheTyne]

27 minutes ago, Anna B said:

I never get any paperwork regarding my pension, it's simply paid automatically into my bank account. Sorry to show my ignorance, but is tax (if any) on it deducted at source, or do the recipiants have to faff about paying it?

Deducted at source. I have state and a private pension (index linked) and an annuity. The total tax to be paid is taken from my annuity. No need for me to do owt. As others have said it’s frustrating still having to pay tax but it’s all done for me.