What is my taxable income???

kjmuttie

Hi there.....I need some advice on what exactly constitutes my taxable income:

I'm 66 and separated from my husband for 7 years but I live in 'our' house and pay the bills, taxes, etc. He used to (graciously) send about £14k a year but that has now decreased to about £9k. I get a bit of UK pension based on husband's earnings cause I never worked here long enough to have my own. We have never divorced because of the costs involved.

I stopped working 3 years ago and received the retirement thingy from HMRC as I wasn't in PAYE any longer. Never filed to pay income tax as I never worked again and only got a few thousand annually from state pension.

Should I have been??? Does the money my husband sends me to live on constitute income that is taxable???? His name is still on the deeds to the house (which is now mortgage free as I downsized)

My US pension has just kicked in and now with the UK state pension will put my income (what I consider income) over £10k in 2015/2016 and I should file a self assessment for that but am now worried about hubby's payments to me.

Has anyone else experience in this area??? I'd be so grateful for advice!

Thanks in advance!

HappyMJ

The money your husband gives you is not taxable. It's a gift even though you are estranged it's still a gift. You do not declare gifts for tax purposes. You would only declare them for benefit purposes when requested.

Is the UK pension paid to you in your name? Do you get payments and paperwork in your name from the pension provider? You might find that as your husband is still around the income is attributed to him and he pays the tax on it.

molerat

http://www.adviceguide.org.uk/england/tax_e/tax_what_is_taxable_income_e/taxable_and_non-taxable_income.htm

kjmuttie

Hi Happy - thanks so much for the swift (and very positive) reply.
No, my 2 wee pensions are in my name. Am slightly confused/don't understand 'You do not declare gifts for tax purposes. You would only declare them for benefit purposes when requested.' Does this mean if I were to try and claim any benefits I would list the 'gifts'?

Thanks again.

kjmuttie

Thank you molerat for your link to citizens advice. Found what was needed there.

I am really rubbish negotiating the forum site so if I miss a thank you or acknowledgement, please forgive!

SueMaggie

If you still need help I would recommend talking to these people http://www.taxvol.org.uk/. They provide a free service for older people and are staffed by current and former tax professionals.

To use the service you need to be over 60 and have an income of less than £20,000 a year.

My late mother-in-law had lots of tax problems at the end of her life and they sorted it all out for her really quickly and explained it all very clearly.

I take the opportunity to mention them as often as I can as not many people seem to know about the service, but it worked really well for my mum-in-law.

purdyoaten

If the US pension is regarded as your income for tax purposes don't forget the 10% foreign income deduction:

http://www.taxcalc.com/kb/index.php?View=entry&EntryID=810

kjmuttie

Thank you Sue, I'll check it out. Very much appreciated

kjmuttie

Thank you Purdy. With my memory I will forget so have copied down your suggestion (along with others ). Thanks for taking the time.