State pension - over Pension Credit threshold by pennies - any options?

paofi

Hi all,

My mother has a state pension, and has up until now always received Pension Credit. This, of course, triggers a whole host of aid - including winter fuel payments and the like.

Having read through the documentation she has been provided with, it turns out for the coming year she will be approx 20 pence above the thresh-hold for receiving Pension Credit, thereby significantly impacting her income because of the above. She would obviously much rather have 20p less and receive Pension Credit.

Is this just 'tough', or should I advise her to reduce her pension amount by a few pennies to below the threshold? Not really sure where she stands or how she should proceed.

Many thanks

anmarj

She will still get winter fuel payment as this not dependent on Pension Credit.

richard9991

paofi wrote: »

Hi all,

My mother has a state pension, and has up until now always received Pension Credit. This, of course, triggers a whole host of aid - including winter fuel payments and the like.

Having read through the documentation she has been provided with, it turns out for the coming year she will be approx 20 pence above the thresh-hold for receiving Pension Credit, thereby significantly impacting her income because of the above. She would obviously much rather have 20p less and receive Pension Credit.

Is this just 'tough', or should I advise her to reduce her pension amount by a few pennies to below the threshold? Not really sure where she stands or how she should proceed.

Many thanks

If she is above the threshhold then she cant claim pension credit DWP will always pay the Benefit which you get the most money from in this case it is State pension

pmlindyloo

What benefits are you specially referring to?

Although Pension Credit passports someone to HB and CT support she will still be entitled to these based on a low income.

benniebert

paofi wrote: »

Hi all,

My mother has a state pension, and has up until now always received Pension Credit. This, of course, triggers a whole host of aid - including winter fuel payments and the like.

Having read through the documentation she has been provided with, it turns out for the coming year she will be approx 20 pence above the thresh-hold for receiving Pension Credit, thereby significantly impacting her income because of the above. She would obviously much rather have 20p less and receive Pension Credit.

Is this just 'tough', or should I advise her to reduce her pension amount by a few pennies to below the threshold? Not really sure where she stands or how she should proceed.

Many thanks

Is she liable to UK tax? If so, make sure that you only include the net income, after tax. If she pays tax through self assessment, then that amount should also be taken from the income too.
Many people receiving GPC also pay tax.

Pennywise

benniebert wrote: »

Is she liable to UK tax? If so, make sure that you only include the net income, after tax. If she pays tax through self assessment, then that amount should also be taken from the income too.
Many people receiving GPC also pay tax.

She won't be liable to tax if she's only just over the pension credit threshold. If she's paying tax, then she needs to get the deductions stopped as she's not liable.

She can earn £10k+ before becoming liable to tax. The pension credit threshold is far below that.

thorsoak

Pennywise wrote: »

She won't be liable to tax if she's only just over the pension credit threshold. If she's paying tax, then she needs to get the deductions stopped as she's not liable.

She can earn £10k+ before becoming liable to tax. The pension credit threshold is far below that.

Incorrect. State retirement pension is deducted from the personal allowance to give the pensioner a tax code. For instance, my state retirement pension for the year 2014/15 will be £8,164, and that is deducted from my personal allowance of 10660 (age allowance plus £60 per year for washing uniform at home) - which means that I pay tax on anything over and above £2436.

p00hsticks

anmarj wrote: »

She will still get winter fuel payment as this not dependent on Pension Credit.

You are correct, but the OP may mean cold weather payments, which are paid whenever the weather goes below freezing for a week and are means tested

benniebert

Pennywise wrote: »

She won't be liable to tax if she's only just over the pension credit threshold. If she's paying tax, then she needs to get the deductions stopped as she's not liable.

She can earn £10k+ before becoming liable to tax. The pension credit threshold is far below that.

That's not always the case. The GPC limit for a single person could be anywhere between just over £148 a week to over £270 a week.


Someone with a SRP of £150 a week and other income of say another £100 a week, will be paying tax on £3000 of that income and could still be receiving GPC.


For a couple they could well be getting GPC if they had an income of over £486 a week.

xylophone

For full information see

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382867/proposed_benefit_and_pension_rates_2015_to_2016.pdf

Pension Credit is not taxable. State pension counts as taxable income.

Income tax allowances
https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2015-16/tax-and-tax-credit-rates-and-thresholds-for-2015-16