State pension and income tax

MABLE

My significant half is retiring and receives his first state pension on a weekly basis as from 14 September. He has two private pensions and would like to know can he choose which private pension the income tax is taken off.

Also because he drastically reduced his working hours from April of this year he has so far only earned about £3000. Bearing in mind his tax free allowances are £10600 would he then not start paying tax until he has exceeded that amount or does he just claim back any overpayment at the end of the tax year.

HOWMUCH

Not sure if you may be able to taken advantage of the Married couples allowance. You husband will only pay tax on the difference after he's exceeded his tax allowance code. So add his pensions onto the £3000 and then he will pay 20per cent of the difference it's paid weekly. He can have his tax code applied to either pension.

Pennywise

He needs to phone the tax office, tell them his income from all the different sources and tell them which he wants his tax taken from. HMRC can apportion his tax code between his private pensions and employment, so it can be set to be right rather than wait until the year end and claim repayment. HMRC won't do this unless they're asked to and told the amounts of pensions/earnings etc.

CLAPTON

MABLE wrote: »

My significant half is retiring and receives his first state pension on a weekly basis as from 14 September. He has two private pensions and would like to know can he choose which private pension the income tax is taken off.

Also because he drastically reduced his working hours from April of this year he has so far only earned about £3000. Bearing in mind his tax free allowances are £10600 would he then not start paying tax until he has exceeded that amount or does he just claim back any overpayment at the end of the tax year.

if you indicated how much each of his income sources will be in tax year 2015-16 then it wold be easier to help

MABLE

Thanks everyone for their replies and very much appreciated. Hubby has now sorted everything out with HMRC. However one thing that is really annoying him is he has received a letter yesterday from DWP advising when his first payment will be made and the wording of the letter.

What he does object to and bearing in mind he is a proud person they refer to his payment as a benefit. To him and like a lot of others its their right and he has never claimed any form of benefits in his life.

Just a moan.

agrinnall

MABLE wrote: »

What he does object to and bearing in mind he is a proud person they refer to his payment as a benefit. To him and like a lot of others its their right and he has never claimed any form of benefits in his life.

State pension is a benefit that (in most cases) results from contributions into the system, like some other benefits, such as contributions-based JSA. Other benefits are payable regardless of contributions because of the low level of income and/or savings. I don't see why any stigma should be felt with either type of benefit, and certainly not not with the contributions based ones. If your husband feels very strongly about it I suppose he could refuse to accept his pension, but that might be carrying principles a bit far...:)

Hope he enjoys his retirement.