State Pension, Tax & Tax Returns

Neil ofthe nene

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Wasting a few minutes before setting off for the first evening match of the year so thought I would ask this question.

In the next 12 months I expect to start getting my state pension. I am already paying tax on my (huge ;)) bank pension and so will have to pay tax on my state pension. Will I have to complete a self assessment tax return?

The .Gov website only says "you might have to complete a self assessment tax return". Do HMRC do something automatically to the tax code on my work pension or do I have to contact them and ask if they want a return doing?
 

gingert76

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not being funny but wouldnt it be a good idea to call them anyway and confirm rather than accepting a reply on here?
 

JohnLondon

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I would contact them & see whether they want you to complete a tax return, I would very much doubt it. More likely, they will adjust your tax code to take into account the additional income from your state pension and any savings interest you may receive over the £1,000 threshold
 

richox12

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Register and do a tax return anyway. It only takes minutes. That way you know it's right. And..............you wont have to pay for months after.
 

The Landlord

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Wasting a few minutes before setting off for the first evening match of the year so thought I would ask this question.

In the next 12 months I expect to start getting my state pension. I am already paying tax on my (huge ;)) bank pension and so will have to pay tax on my state pension. Will I have to complete a self assessment tax return?

The .Gov website only says "you might have to complete a self assessment tax return". Do HMRC do something automatically to the tax code on my work pension or do I have to contact them and ask if they want a return doing?
You will have to do a self assessment & yes they'll adjust your tax code and notify the pension providers. If you've underpaid tax during the year, you'll be given the amount to pay at the end of the self assessment & you can either pay it then or by the deadline stated. Alternatively if you've overpaid they'll reimburse you.
 

mickthechippy

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As far as i understand you still only hve the standard tax free allowance

any income above that is subject to standard tax rates at the time
 

DFL

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I’m not offering any advice Neil, but I can tell you that I haven’t had to do any self assessment forms, my private pension provider deducts tax automatically since receiving the added state pension.
 

ae111sr

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Agree with DFL. I was getting my Occupational Ppension for around 9 months before my State Pension kicked in. Extra tax was taken automaticallly from my Occupational Pension.
 

The Landlord

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I’m not offering any advice Neil, but I can tell you that I haven’t had to do any self assessment forms, my private pension provider deducts tax automatically since receiving the added state pension.
Surprises me that. I always had to help my in-laws with their tax returns & they only had state pensions plus interest from savings. Check your not paying too much!
 

gingert76

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i was going to say you have to reach the taxable level first dont you which the state pension alone would never reach? this is another reason im looking at the philipinnes for living as you can easily live on £1500 a month there and my pensions will already cover that

still bloody wrong that anyone who reaches their state pension retirement age should then pay tax again but hey ho!
 

John Step

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I had a firms pension before the state pension age. When the state pension was due they wrote to me. They knew exactly what extra tax I had to pay on my firms pension and gave me the tax code before the first payment was paid.
State pension is paid gross and the tax code is adjusted on your firms pension.

As an aside I am often amazed by some younger folk who have no idea you still pay tax after retirement!!
 

gingert76

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ive had a pension ever since i was 19, got 5 now that im not paying into from various jobs, a final salary one which i know is mega from my banking days (mega as in no point putting together or cashing in) and then i have my current one with my company and state pension already paid into fully.

my twin brother has never paid into a pension! know lots of people under 30 who havnt either
 

DFL

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Surprises me that. I always had to help my in-laws with their tax returns & they only had state pensions plus interest from savings. Check your not paying too much!

I do check (roughly) and on a few occasions both myself and my partner have received tax refunds from Inland Revenue.
 

ajaxer5

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They will calculate your tax for you,and it will all be deducted from your huge
bank pension.
 

HawkerMan

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I have 3 pensions and still do a bit of contracting work, pensions use up all of my personel allowance and still pay tax on one pension any work I do I pay Basic rate Tax on all money earned, no self assesment required.
 

160642fishing

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I hope they make a better job of it than they did mine Neil,I get State Pension and a draw down pension,every year they write to me to say I owe them money,this year they said I owed them £108,I queried it and they came back to say I only owed £2 which would be collected next year !,I did get them to agree that I stopped doing self assesments.
 

Neil ofthe nene

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not being funny but wouldnt it be a good idea to call them anyway and confirm rather than accepting a reply on here?

I agree, I was just canvassing people's experiences with a spare five minutes before leaving the house. My tax affairs are quite simple. So I expect they will adjust my bank pension tax code.

I already do an annual return for my son because of the house he lets out (financially savvy but no good with paperwork). So I agree that the self assessment process is straightforward. The boss may be a little more complicated when her pension kicks in because of her investment income. I am already making sure that all figures are recorded and documents retained for both of us. Letter sent to HMRC for clarification of her position awaiting reply.

I just need to plan which mattress to stuff with the extra white fivers. Either that or there will be no excuse for not buying a new pole.
 

Arfer Mo

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i was going to say you have to reach the taxable level first dont you which the state pension alone would never reach? this is another reason im looking at the philipinnes for living as you can easily live on £1500 a month there and my pensions will already cover that

still bloody wrong that anyone who reaches their state pension retirement age should then pay tax again but hey ho!

I have to do a self assessment return. But my state pension alone is above the tax free benefit.
 

gingert76

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my state pension is max at £175 a week so below the threshold as that £9100 annual
 
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