\tax on multiple small pensions

parcival

My wife reaches her 60th birthday in a couple of months.
She has not been working for a few years - living off savings. Her savings income has been paid gross as it gets no where near her personal allowance.

For the 2015/16 tax year her savings income plus the 3 small pensions that will become due in August will not quite use her tax allowance.

For 2016/17 her income from pensions plus savings will be more than her personal allowance.

How (or will) tax be deducted from pension income.

Am I correct that she should contact the tax office to get an up to date tax code that reflects her new situation....

Many thanks

molerat

Savings interest is taxed differently from other income from this year and again differently next year, this year she can have up to £15600 tax free including £5000 savings income and next year £16800 including £6000 savings income (subject to tax codes, taxable income and budget changes). Get her tax codes split accordingly over each of her pensions.

polymaff

parcival wrote: »

My wife reaches her 60th birthday in a couple of months.
She has not been working for a few years - living off savings. Her savings income has been paid gross as it gets no where near her personal allowance.

For the 2015/16 tax year her savings income plus the 3 small pensions that will become due in August will not quite use her tax allowance.

For 2016/17 her income from pensions plus savings will be more than her personal allowance.

How (or will) tax be deducted from pension income.

Am I correct that she should contact the tax office to get an up to date tax code that reflects her new situation....

Many thanks

How have HMRC been dealing with your wife's affairs up to now? Does she fill in a tax return? Are her current pensions using a numeric tax code?

xylophone

How have HMRC been dealing with your wife's affairs up to now? Does she fill in a tax return? Are her current pensions using a numeric tax code?

The pensions are not yet in payment - I should suppose that if she only receives interest on cash deposits she has completed R85s- if she has bond fund or REIT PID income then she completes R40 annually?

polymaff

xylophone wrote: »

The pensions are not yet in payment - I should suppose that if she only receives interest on cash deposits she has completed R85s- if she has bond fund or REIT PID income then she completes R40 annually?

My mistake - but I'm ready to wait two months for the answers

I take "savings income" to be interest payments, OP?

It is going to be interesting to see how HMRC deal with the huge number of people who will have taxable savings income paid gross as of next April.

parcival

All income at present is 'interest' and dealt with via R85's.
There has been no tax return or tax code for years...