Income Tax Q

mardatha

My OH will be 65 this year. He wants to know how much tax he will pay - does anybody know ?

mardatha

Also, is my pension lumped in with his as a joint thing or are we separate entities lol ?

McKneff

You each get your pension in your own right if you have enough NI contributions ie 30 years. There is no such thing as a married couples pension now a days (unless youre really, really old)

Contact the DWP and ask for a pension forecast for yourself and get him to do the same. You will then know exactly what you will be receiving in pension.
There may be a second state pension that you are entitled to.

As far as tax goes, it really depends on his circumstances, is he continuing to work, will he have a private pension.

Tax allowance at 64 is £6475 (going up in April) to £7475
Tax Allowance at 65 is around £9475 (going up in April but not sure how much)
So you see it depends how much income he will have.

mardatha

That's great and thanks for answering so fast. He will have a basic state pension plus a works pension of £85 a week. If the basic state pension is £95 then both of them only add up to £9360 or something like that. (I can't count lol!)

McKneff

Youre welcome

So he should be just under the tax threshhold unles of course he has second state pension, do you know for sure that he wont get one,
you too

mardatha

We don't know what that is ? He is on pension credit just now, stopped work at 60.

McKneff

I think its to do with Serps, paid in the past, best thing to do is ring DWP, they will know far more than me.

Tell him 'happy retirement' from me.

krisskross

My husband has a small private pension of approx £160 a month. He also gets state pension plus his serps entitlement. He is liable for income tax and it is deducted from the private pension as there is no mechanism for paying income tax within the DWP.

Do you know what your total income will be as with pension credit I presume you get housing and council tax help. You might have too much pension income to be eligible for this.

mardatha

Ok, no SERPS, but he has worked all his life so will get the full state pension. Just been for a look at the DWP site. Seems like we will be just over the threshold and thats fine. At least we will be no worse off. I'm used to living on a pittance so no change eh TY x

jennifernil

Do you have your own pension entitlement? If you are also over your retirement age, and if it would be more advantageous, you can claim a pension on his contributions. You will get 60% of his basic state pension.

mardatha

I;m already on the basic pension yes, I'm 61