Dwp and bank statement

Duffstermoon

I am trying to work out my 95 year old fathers finances and to ascertain whether he should be paying tax on his income.Im slightly worried as his bank statement has a DWP PC with £246.20 and DWP £66.40 as his income.These are both weekly incomings.This means that he has close to £16000 per annum.As I understood it his tax free allowance is £10660,should he be paying income tax on the money over the £10660?

General_Grant

Duffstermoon wrote: »

I am trying to work out my 95 year old fathers finances and to ascertain whether he should be paying tax on his income.Im slightly worried as his bank statement has a DWP PC with £246.20 and DWP £66.40 as his income.These are both weekly incomings.This means that he has close to £16000 per annum.As I understood it his tax free allowance is £10660,should he be paying income tax on the money over the £10660?

State pension is subject to tax but is paid without deduction at source.

I expect the £246.20 is his state pension - more than the basic pension but probably with enhancement for SERPs etc.

Do you know what the £66.40 is for precisely?

You need to know how the amounts are made up as some benefits will not be subject to tax.

greenglide

"DWP PC" will be a pension credit payment.

A payment of state pension would be "SP".

I assume that the state pension and pension are being paid together - the £246.20

The payment of £66.40 - is this Attendance Allowance? It should have AA after the DWP.

Attendance Allowance is not taxable.

anmarj

greenglide wrote: »

"DWP PC" will be a pension credit payment.

A payment of state pension would be "SP".

I assume that the state pension and pension are being paid together - the £246.20

The payment of £66.40 - is this Attendance Allowance? It should have AA after the DWP.

Attendance Allowance is not taxable.

It's not aa, the low rate is £54.45 and high rate is £80+, and it is not a DLA payment either

State pension could be combined with Pension credit, but would show as PC. If your dad can answer security question call the pension staff and get a breakdown over the phone, or if your dad can't answer the questions then ask for a breakdown to be sent out

according to an uprating sheet there are several benefits at that rate.

xylophone

That particular amount £66.40 see http://www.focusondisability.org.uk/brates-2.html

Does he receive a combined payment of State Pension and Pension Credit?

He should receive annual statements from DWP - have you looked through his correspondence?

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits
might be worth a look.

Does your father still have capacity?