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Quote: Originally posted by janus on 08/12/2014

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Quote: Originally posted by sunshinetours on 08/12/2014Do check what year we are talking about here.

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Your personal allowance is £10,000 (£10500 if born before 5/4/38) for this current tax year we are now in but was only £9440 for 2013/14.

As above if only state pension then unlikely to be taxable on its own but with other interest and any taxable benefits it could end up moving you into tax charge. If so you would need to let HMRC know your income exceeded the personal allowance and you owe tax

Tax cannot be collected directly from any state benefit via income tax currently

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You mean before 5/04/48 I am sure.

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Quote: Originally posted by Bob61 on 10/12/2014

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I have an occupational pension and the state pension both of which are taxable. I pay tax on the occupational pension at source via PAYE and the way they recover the tax due on my state pension is to reduce my 10,500 tax free allowance by (hopefully) the correct amount. In other words my tax code is reduced.

Two things to bear in mind with the state pension is that you don't get it automatically and have to apply for it and you don't actually get paid it until one month after it is due, as it is paid in arrears...so don't spend it until you have got it

When I first retired and took on a part time job I got into a right mess with the tax office too, through no fault of my own, and ended up owing 3 years tax which was about £3000. I ended up working just to pay the tax man. When I eventually got it paid off I packed up work...too stressful with self assessment etc. I now survive on my pensions and don't have to fill in tax forms any more thank goodness.

Post last edited on 10/12/2014 02:01:09

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