P60 & unemployed

Nine_Lives

I work, so therefore in something like the second/third week of April, my employer gives me my P60 & i can see my stats for that tax year. Happy days.

My mother is unemployed & on benefits & has been for some time now. How does she get a P60 to state exactly what she's earned in that tax year? Or do unemployed people not get P60s? (sorry for being green here). Is there some other form they can obtain which provides this information?

jem16

P60 is only given to someone in employment.

As far as I know, no other form is available. What is it needed for?

anamenottaken

K_P83 wrote: »

I work, so therefore in something like the second/third week of April, my employer gives me my P60 & i can see my stats for that tax year. Happy days.

My mother is unemployed & on benefits & has been for some time now. How does she get a P60 to state exactly what she's earned in that tax year? Or do unemployed people not get P60s? (sorry for being green here). Is there some other form they can obtain which provides this information?

By "unemployed" do you mean claiming jobseekers allowance?

Was she in employment at the end of the 2010-11 tax year (5 April 2011)? If she was, her employer should have issued a P60 for 2010-11.

Nine_Lives

jem16 wrote: »

P60 is only given to someone in employment.

As far as I know, no other form is available. What is it needed for?

She qualifie/d/s for gross interest. Since my dad died in September though, she's now receiving a fraction of his pension.

She received DLA & IB anyway, but now she's got his pension on top of that.

I'm wondering if it's taking her over the earnings threshold - as she doesn't want to be claiming gross interest if she's not entitled to do so.

anamenottaken wrote: »

Was she in employment at the end of the 2010-11 tax year

Nope. She's been out of employment for some years now.

McKneff

I wouldnt worry about the DLA amount, it is not taxable anyway

Nine_Lives

In that case then she wont be over the limit, because it was borderline anyway. The pension is still "settling" as she's getting varying degrees right now.

Oh on the topic of which....

* bereavement benefit/allowance (whichever is the £2k one off payment)
* Lump sum payment from my dads pension to pay him up the remainder of his first 5years retirement - this came to £10k
* Life cover - £6k i think
* A £1k payment from his pension to go towards funeral costs

Will any of these count towards her tax free allowance? As she's received all of these since my dad died in September.

If they do then she's obviously way over her allowance - so as she's filed R85 forms on various accounts for this tax year, what should she then do?

If they don't count towards it, then there's nothing to worry about.

xylophone

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm
http://www.nhs.uk/CarersDirect/moneyandlegal/deathandbenefits/Pages/Overview.aspx

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnBenefitsPensionsAndMaintenance/DG_10027059

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_10026707

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Illorinjured/DG_10018913

might be of assistance.

Nine_Lives

xylophone wrote: »

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnBenefitsPensionsAndMaintenance/DG_10027059

Taxable benefits

• some Incapacity Benefit payments - not taxable for the first 28 weeks
• pensions payable under the Industrial Death Benefit scheme

So my mums incapacity benefit is taxable - so this goes to her allowance. Yet it's not taxable until the 2nd half of the year? Have i understood that correct?

Would the pensions mentioned in this case include my dads pension, of which a fraction is now paid to my mum? I'm assuming yes. I'd also assume that the remaining pension sum she was paid up (£10k) would also be taxable & therefore she's gone over the limit for this tax year.

This would be it then i would guess.

In this case, what does she do now? Call the tax orrifice to say she's filed an R85 but has now gone over the limit? Is she likely to get burned for this now?
What sort of dates will they want? Or do they just group it as one total year? So if you've gone 50 weeks earning £10 per week, but in the final 2 weeks you earn £15k, do they write the whole year off, or only the final 2 weeks?

jem16

K_P83 wrote: »

So my mums incapacity benefit is taxable - so this goes to her allowance. Yet it's not taxable until the 2nd half of the year? Have i understood that correct?

I would imagine that it means the first 28 weeks that it is paid and not the first 28 weeks of each tax year.

Would the pensions mentioned in this case include my dads pension, of which a fraction is now paid to my mum? I'm assuming yes. I'd also assume that the remaining pension sum she was paid up (£10k) would also be taxable & therefore she's gone over the limit for this tax year.

The monthly pension that your mum receives from your dad's pension will indeed be taxable income. However you will need to clarify the position of the two lump sums - perhaps call the pension provider?

In this case, what does she do now? Call the tax orrifice to say she's filed an R85 but has now gone over the limit? Is she likely to get burned for this now?
What sort of dates will they want? Or do they just group it as one total year? So if you've gone 50 weeks earning £10 per week, but in the final 2 weeks you earn £15k, do they write the whole year off, or only the final 2 weeks?

It's her total taxable income over the tax year that counts.

jennifernil

She needs to contact all the banks where she has her accounts and tell them she needs to withdraw the R85s.

Nine_Lives

jem16 wrote: »

The monthly pension that your mum receives from your dad's pension will indeed be taxable income. However you will need to clarify the position of the two lump sums - perhaps call the pension provider?

Would it be the pension provider or the tax office that would provide this information?
I wouldn't have thought it'd be the business of the pension adviser to tell you whether it's taxable income or not. I would've thought their sole job is to just give you the money??

jennifernil wrote: »

She needs to contact all the banks where she has her accounts and tell them she needs to withdraw the R85s.

Thanks. Is this ALL she needs to do? She wont need to get in touch with her tax orifice?