Taxing State Pension

[crookesey 635]

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 635]

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 309]

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 221]

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 38]

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 1,417]

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 3,411]

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 200]

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.

[HeHasRisen 3,411]

1 minute ago, YorkieontheTyne said:

Deducted at source. 

No it wont, setting this mechanism up for the State Pension would cost a fortune, it will be as above for anyone who has State Pension only, anyone who is/was sensible enough to make other arrangements will have it taken from that.

Edited March 10 by HeHasRisen

[YorkieontheTyne 200]

34 minutes ago, HeHasRisen said:

No it wont, setting this mechanism up for the State Pension would cost a fortune, it will be as above for anyone who has State Pension only, anyone who is/was sensible enough to make other arrangements will have it taken from that.

READ what I said in full. “Total tax paid is taken from my annuity”. Sorry but don’t know how to highlight individual parts of previous quote.

[RollingJ 2,050]

1 minute ago, YorkieontheTyne said:

READ what I said in full. “Total tax paid is taken from my annuity”. Sorry but don’t know how to highlight individual parts of previous quote.

Select the bit you want to highlight, then use the 'B', 'I' or 'U' at the top of the reply window.

[HeHasRisen 3,411]

18 minutes ago, YorkieontheTyne said:

READ what I said in full. “Total tax paid is taken from my annuity”. Sorry but don’t know how to highlight individual parts of previous quote.

Anna was asking how it would work for her, I suspect she doesnt really care how it works for others.