State Pension and Income Tax

unclepotter

Hi all

I'm a bit confused about if my partner will have income tax to pay on her state pension.She retired on 6th January 2013 and gets a State pension of £128 a week,as she doesn't have any other pensions we get pension credit(I'm disabled and don't work).
Will she have any income tax to pay on her state pension.?

Thanks

xylophone

http://www.hmrc.gov.uk/pensioners/pension.htm
https://www.gov.uk/income-tax-rates
http://www.ageuk.org.uk/money-matters/claiming-benefits/pension-credit/

unclepotter

Thanks for reply xylophone.

I have looked at all the relevant info but am confused because my partner has received at letter from HMRC saying that her tax code was from April 2012 to 2013 was 810L but has been dropped to 655L.She was employed by Morrisons and it says that Morrison will now start deducting the right amount of tax,but she retired on 6th January 2013.They have calculated her state pension from 6th January to 6th April 2013(12 weeks)at £1546 (£128 x12) and took £1546 from her personal allowance of £8105 which leaves £6559 (tax code 655L).They are saying that they estimate she owes£64.58 in income tax...how can that be?

CLAPTON

They obviously don't know that she is no longer employed.


how much income did she have ?
how much tax has she paid ?
it may be that she is due a tax refund rather than a payment

xylophone

Will the pension plus your wife's income from Morrisons for the tax year 2012-13 be more than her personal allowance?

Will she be receiving a pension from Morrisons?

And incidentally, does she have any savings income outside tax advantaged schemes like the ISA on which she is currently not paying tax?

unclepotter

H Clapton.

She only worked part time.Up to 28th Dec 2012(her last 4 weekly wage slip) she earned £5329 taxable pay and hadn't paid any income tax

unclepotter

@ Xylophone...

No pension from Morrisons,or any other private pension.No ISA and savings well under whats allowed.We have also started receiving pension credit.While she was working we got income support.I get DLA as a benefit but no other except housing and council tax benefit

xylophone

Her wage and state pension add up to less than her personal allowance for the year but check on any savings accounts on which she has registered (or not) as a non-taxpayer.
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm the allowances in the examples are out of date so see link in first post.

unclepotter

Hi xylophone,
We don't have any savings accounts registered as we only opened one in October 2012 which we save a fixed monthly amount. The interest isn't calculated and added till October 2013.

xylophone

Then it looks as though HMRC don't know that your partner has retired from paid work - she should ring HMRC.

unclepotter

Just an update to my original question.

After my partner received another letter from HMRC saying her tax code had been further reduced to enable the £64 they estimated she owed to be collected she phoned them and they said they had now got a copy of her P45 and the date she left Morrisons, there is nothing to pay and to forget about the previous letters.

They are all heart

Thank you to all those who offered their help. :T