Pensioners Tax Return

Minimum66

My 83 year old father has recently returned to the UK from Spain where every year he has completed a tax return. He has no income other than a state pension and a work pension but is insistent that he must complete a return here in the UK. I thought his pension was taxed before being paid to him so doesn't need to complete a return. Which one of us is right? He isn't earning interest on any savings and has the odd share. Any help appreciated!

dunstonh

Who is insistent that he must complete a return? HMRC or your father?

Is it the full return or just the statement of income?
Is this the first year after his return or has this now gone into a second/third tax year?

Minimum66

It's my father who says he should complete a return. He has only been back in the UK since the end of December last year. Sadly he has dementia so trying to get any real information out of him is difficult.

He was officially a Spanish resident so paid some form of tax there and in fact has to complete a return in Spain shortly.

I'm just trying to work out his financial affairs for him and seem to be going round in circles.

Linton

His works pension will be taxed before payment whereas his State Pension wont. Any tax due on the SP will be taken from the works pension. You should check that the tax code for his work pension takes his SP into account by a corresponding reduction from the default allowance. He shouldnt need to complete a return unless HMRC request it. They will know about both his pensions anyway. Do HMRC know that he is now UK resident?

Minimum66

Thanks - HMRC don't know he is back in the UK yet. That's on my list of things to do. Where would I find the tax code for his work pension? I don't have any paperwork except for bank statements. And his work pension people won't talk to me unless I send them a LPA which I am waiting for at the moment.

greenglide

Submitting a self assessment, even when not strictly necessary, doesnt cause issues with HMRC. They wont complain.

I fail to understand why they dont make everyone complete them so that income tax is less "optional"!

Of course just filling in a form doesnt guarantee is is right.

Linton

Minimum66 wrote: »

Thanks - HMRC don't know he is back in the UK yet. That's on my list of things to do. Where would I find the tax code for his work pension? I don't have any paperwork except for bank statements. And his work pension people won't talk to me unless I send them a LPA which I am waiting for at the moment.

Once HMRC know your father exists as a UK tax payer they should at some point send him tax code details. If you ring HMRC or his work pension on his behalf in his presence does he have the ability to answer the ID questions and then verbally give them permission to talk to you?

xylophone

When you have the LPA, you can advise HMRC that you will be dealing with your father's affairs - you will need to send them a certified copy.

Minimum66

He probably wouldn't be able to answer ID questions but would be able to give them permission to talk to me. I'll give it a go a see what happens