tax on state pension, PAYE or self-assessment?

d63

on the hmrc website it says that: "HM Revenue & Customs (HMRC) normally asks your pension provider to collect any tax due on your State Pension or other benefit at the same time. They do this by adjusting your tax code to take account of the State Pension or benefit"
so, my question is then, can i request that the tax on my state pension instead be collected by my usual SA100 self-assessment, rather than changing the PAYE code?

jem16

d63 wrote: »

can i request that the tax on my state pension instead be collected by my usual SA100 self-assessment, rather than changing the PAYE code?

Yes you can.

d63

jem16 wrote: »

Yes you can.

well, i phoned up this morning, and according to the person i spoke to, the tax on the state pension can only be collected through my tax code and not through self-assessment. i felt disinclined to argue. thanks anyway.

xylophone

Yes you can.

I was interested by this- presumably, if it is possible, people would be able to enjoy the gross income for the year (earning a fortune in interest (:rotfl:), only paying tax at the end......

JezR

Conversely if you don't have any / sufficient other earned income then it is taken through self assessment.

Your_Hero

d63 wrote: »

well, i phoned up this morning, and according to the person i spoke to, the tax on the state pension can only be collected through my tax code and not through self-assessment. i felt disinclined to argue. thanks anyway.

It depends if you have any other income and if you are still working. See below:

Tax if you only get the State Pension

The way that you pay tax on your State Pension depends on whether you are employed or not:

• if you're working, you'll pay tax through your employer's PAYE scheme depending on the amount you earn
• if you're not working, you'll need to pay tax through Self Assessment by completing a tax return

If you don't normally complete a tax return, you'll need to use form SA1 to register for Self Assessment before you can get a tax return.

http://www.hmrc.gov.uk/pensioners/pension-statepension.htm

jem16

d63 wrote: »

well, i phoned up this morning, and according to the person i spoke to, the tax on the state pension can only be collected through my tax code and not through self-assessment. i felt disinclined to argue. thanks anyway.

That's a pity. However my understanding was that you have a choice. It would perhaps need someone higher up than the call centre to make the decision. I have been able to ask them not to adjust my tax code for pension payments and savings interest and they certainly have done what I asked. It's all sorted out later on my tax return.