applying for pension.

supersuzie50

I am inundated with forms to complete for pension. Now they want to know all about my savings? Why do they need to know about my savings?
I should get a state pension and a private pension - are you not allowed two pensions?

Every time something alters - they change my income tax allowance - I am sure everything is wrong but how do I prove anything? I do not keep my paperwork organised. Life is just so hard with caring for mother and trying to sort out my pension?

Biggles

There's nothing about savings on the State Pension form AFAICS. Maybe they've sent you the Pension Credit form as well?

tanith

Your post is a little confusing , are you applying for your State Pension ? what age are you? have you paid in for a private pension? They don't enquire about savings to claim your State Pension as Biggles says is it pension credit you are applying for?

beedeedee

My DH applied for his State pension recently and has today received form P161 - Pension Coding Form, which does ask about income from savings accounts and dividends etc. Is that what you mean?
If you have any savings, your bank or building society should be able to furnish you with another statement of the interest they have paid you.
It does seem daunting when you have got so much on your plate at the moment - but you wouldn't want to get served with a great tax bill in the future, simply because you were a bit disorganised when they asked.....

keith1950

Hi supersuzie50, even if you are not applying for pension credit they need to know about savings etc. because they need to know your total income for income tax purposes.

If you are applying for pension credit , then as well as knowing income for tax purposes they also need to know of savings because there are limitations whereby you would lose pension credit if your savings are above certain levels.

At the end of the day you need to pay tax on your total income and that includes interest on savings, even if you have no savings you have to declare that you have none.

If you have several sources of income then they will probably divide any tax allowance between the different incomes.

If one income is higher than your tax allowance it is simplest to have the total tax allowance put against this 'main' income and pay 20% tax on all your other income.

If you situation is complicated you may have to submit a self assessment at the end of the tax year.