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Retired mother lives with us: does it affect self-assessment?

I'm not sure which forum to post this (please do advise if I should move the post to a different forum. Sorry :o).

My mother (75 years old) came to stay with us early February 2014. As it's time for filling out self-assessment form, I don't know what to do :o with regards to my mother's pension (which goes straight into her bank account and she manages by herself; mum does contribute with household expenses).
Mum was told my DWP that she doesn't need to fill out her tax forms as she is now part of my household (my son, daughter, myself and my mother).

Is my mother's pension classified as extra/other 'income' ?

Comments

  • Linton
    Linton Posts: 18,539 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Doesnt sound correct to me as tax is charged on an individual and not a household basis. Her income isnt part of yours. She probably wont have to fill in a Self Assessment anyway unless she has significant income beyond her state pension.
  • xylophone
    xylophone Posts: 45,954 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I don't understand this - your mother's income is not your income and if she needs to complete a tax return she should do so - she should also advise HMRC of a change of address?
  • System
    System Posts: 178,426 Community Admin
    10,000 Posts Photogenic Name Dropper
    I think you/she may be confused. For benefit purposes she is part of your household so may affect any benefits you/she claim but for income tax purposes ALL people in the house are separate entities and should do their own self-assessments if required.

    If your mother's only income is her pension then I doubt she needs to take any action on the tax front
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Mojisola
    Mojisola Posts: 35,574 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    !!!!!! wrote: »
    If your mother's only income is her pension then I doubt she needs to take any action on the tax front

    If she only has her state pension, she may be entitled to claim Pension Credit - worth checking.
  • greenglide
    greenglide Posts: 3,301 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    Mojisola wrote: »
    If she only has her state pension, she may be entitled to claim Pension Credit - worth checking.
    But not if she is part of someone else's household.
  • xylophone
    xylophone Posts: 45,954 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    But not if she is part of someone else's household.

    Not sure about this. See https://www.gov.uk/government/publications/pension-credit-toolkit/pension-credit-toolkit-advice-and-guidance-for-stakeholders


    "Someone may still get Pension Credit if they:

    have not paid National Insurance contributions
    have some savings or a small pension
    live with their grown-up family
    own their own home"
  • !!!!!! wrote: »
    I think you/she may be confused. For benefit purposes she is part of your household so may affect any benefits you/she claim but for income tax purposes ALL people in the house are separate entities and should do their own self-assessments if required.

    If your mother's only income is her pension then I doubt she needs to take any action on the tax front

    Thank you All for your replies :)

    I am not claiming any benefit; my son is on JobSeekerA, though. Mum never applied for Pension Credit because her pension fluctuates according to exchange rate Euro-Pound (Pension is transferred from Italy to UK); although, it's not often above £800, more like £700-£800+). She did receive a letter from HMRC stating that she doesn't need to fill out a tax form. I'll have to look into that.
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