Pensioner Benefits and Personal tax Allowance.

roxy28

Born before 1935 so has a tax free allowance of £10660 per year.

If getting Attendance allowance high rate, guaranteed pension credit, housing and council tax benefit, does this all count towards the £10660 tax free allowance?.
I see they are all classed as non taxable income, can someone clarify this.

lld01

Those benefits are not taxable

Morglin

The only state benefit that would be offset against his code, would be his state retirement pension.

Lin

roxy28

Is state benefit lumped together with guaranteed pension credit or kept as a separate payment. Thanks.

anmarj

roxy28 wrote: »

Is state benefit lumped together with guaranteed pension credit or kept as a separate payment. Thanks.

not always, some people have the one payment made up of state pension and Pension Credit or they have it paid as two separate payments. On some accounts you will see SP and PC, if so it is being paid separate if you can only see PC it may be paid as one.

xylophone

http://www.hmrc.gov.uk/incometax/taxable-income.htm

margaretclare

roxy28 wrote: »

Born before 1935 so has a tax free allowance of £10660 per year.

If getting Attendance allowance high rate, guaranteed pension credit, housing and council tax benefit, does this all count towards the £10660 tax free allowance?.
I see they are all classed as non taxable income, can someone clarify this.

AA is non-taxable and non-means-testable.

The others mentioned are all means-tested benefits. Someone who is on means-tested benefits is unlikely to have enough income to pay tax. Housing and CT benefit are paid from the local authority so they don't come under the umbrella of HMRC.

Your £10,660 p.a. could be accounted for by e.g. state retirement pension, state second pension, private pension, works pension. SRP is going to be £5881 p.a. from April, so you still have a way to go before you start paying tax.

margaretclare

We're a couple, we need care from each other, we each have our own taxable income, but we don't receive any means-tested benefits.

That's the trouble with quoting from one's own experience.

We do slightly better tax-wise because we can still claim the married people's tax allowance. We're allowed to split this between us to set against our own pensions income. So, my personal tax allowance is £10,660 plus £785. I still end up paying a little bit of tax, but I'm not too worried about it.

roxy28

margaretclare wrote: »

AA is non-taxable and non-means-testable.

The others mentioned are all means-tested benefits. Someone who is on means-tested benefits is unlikely to have enough income to pay tax. Housing and CT benefit are paid from the local authority so they don't come under the umbrella of HMRC.

Your £10,660 p.a. could be accounted for by e.g. state retirement pension, state second pension, private pension, works pension. SRP is going to be £5881 p.a. from April, so you still have a way to go before you start paying tax.

Ok i see that now, there is no second or private pension, or works pension, i suppose she will start to accumulate some savings from now on, as the housing and council tax benefit will help out.