winter fuel payment

Errata

margaretclare wrote: »

Giraffe69, I agree, I don't see why it is necessary to record receiving letter and/or receiving payment on this thread!

Blimey, so what! Don't like 'em, don't read 'em.

margaretclare

p00hsticks wrote: »

There's a difference between taxable and taxed

The state pension is taxable.
Therefore for someone whose only income is the state pension, 100% of their income is taxable. However, they are unlikely to actually be taxed on any of it as the amount received will be below their annual tax allowance.

I'm not sure of the point Margaret clare was trying to make by saying that most of her income was taxable though - I would expect that to be the case for most people ?

AA is not taxable and non-means-testable. All other income from whatever source is taxable. That encompasses SRP, SERPS and annuities based on previous employment.

luvchocolate

I started this thread when I received my first payment because it will be a big help.....that what the basis of the thread.
So to anyone who is bored with my thread then I would suggest you do not read it.

zygurat789

margaretclare wrote: »

AA is not taxable and non-means-testable. All other income from whatever source is taxable. That encompasses SRP, SERPS and annuities based on previous employment.

Here is a list of non-taxable state benefits:-
http://www.hmrc.gov.uk/manuals/eimanual/eim76100.htm

There are other sources of non-taxable income such as bond income, I have seen this included by people, living on their savings, as taxable income and, thus, needlessly paying tax on it.

As a guide if income comes with a piece of paper saying tax deducted at source like a payslip or interest certificate then it is probably taxable. If there is no tax deducted then it may not be taxable but this should be confirmed with the source of the income and/or HMRC.

mumps

margaretclare wrote: »

AA is not taxable and non-means-testable. All other income from whatever source is taxable. That encompasses SRP, SERPS and annuities based on previous employment.

Not all other income is taxed. Sorry, I think I might have misunderstood, do you mean all your income? My husband gets a pension that isn't taxable.

p00hsticks

mumps wrote: »

Not all other income is taxed. Sorry, I think I might have misunderstood, do you mean all your income? My husband gets a pension that isn't taxable.

Are you sure ? The probability is that it's taxable income (i.e. to be included in the calculations when working out what tax he needs to pay) but that he doesn't actually have tax deducted because his total income is not greater than his annual tax allowance (of around £10,000)

margaretclare

Yes, pensions are taxable. The reason they may appear not to be is because all income is totalled up (except for things like AA and WFP) and set against your personal allowance. See https://www.gov.uk/income-tax-rates/born-before-6-april-1948

We each get the personal allowance of £10,660. Anything over and above that is taxed. It does mean that state pension etc is paid in full but tax is deducted from any other payments e.g. annuities. State pension, SRP etc does form part of the total but tax only comes off the annuities. Confusing, or what?

mjmal51

margaretclare wrote: »

Yes, pensions are taxable. The reason they may appear not to be is because all income is totalled up (except for things like AA and WFP) and set against your personal allowance. See https://www.gov.uk/income-tax-rates/born-before-6-april-1948

We each get the personal allowance of £10,660. Anything over and above that is taxed.

£10,660 if born before 6th April 1938, £10,000 for the rest of us.

zygurat789

margaretclare wrote: »

Yes, pensions are taxable. The reason they may appear not to be is because all income is totalled up (except for things like AA and WFP) and set against your personal allowance. See https://www.gov.uk/income-tax-rates/born-before-6-april-1948

We each get the personal allowance of £10,660. Anything over and above that is taxed. It does mean that state pension etc is paid in full but tax is deducted from any other payments e.g. annuities. State pension, SRP etc does form part of the total but tax only comes off the annuities. Confusing, or what?

Yes, pensions are taxable. The reason they may appear not to be is because all income not taxed at source is totalled up (except for things like AA and WFP and all the other items here:-http://www.hmrc.gov.uk/manuals/eimanual/eim76100.htm). and set against your personal allowance.

We each get the personal allowance of £10,660. ( this is because yiou were born before 6 April 1938, those born between that date and 5 Apri 1948 only get £10,500 and those born after 5 April 1948 get £10,000. These figure are usually increased each year in the Budget, the guess for next year is £10,500.)
Anything taxable over and above that is taxed. It does mean that state pension etc is paid in full but tax is deducted from any other payments e.g. annuities. State pension, SRP, etc does form part of the total but tax only comes off the annuities. Confusing, or what?

This happens for all forms of income that is not taxed at source, not only SRP it is part of the way the PAYE system works. Reducing your tax free pay allowance by your non-taxed income, seems straightforward to me.

mumps

margaretclare wrote: »

Yes, pensions are taxable. The reason they may appear not to be is because all income is totalled up (except for things like AA and WFP) and set against your personal allowance. See https://www.gov.uk/income-tax-rates/born-before-6-april-1948

We each get the personal allowance of £10,660. Anything over and above that is taxed. It does mean that state pension etc is paid in full but tax is deducted from any other payments e.g. annuities. State pension, SRP etc does form part of the total but tax only comes off the annuities. Confusing, or what?

My husband's pension isn't taxable and it isn't added to other income. His pension is because of disability in the line of duty, maybe it is a special arrangement but I can assure you it isn't taxable. It was also useful when our kids wer going to uni as his pension income wasn't included in our income calculation. They didn't get much as my income is good, even though I work part-time, but every little helps as they say.