Pension /Income Tax

Jack_Itin

O.k I turned 65 at the end of April, and am now in receipt of my pension......yesterday I received notification of my new income tax code, which I expected, I will have to pay a small amount of tax, which is fine......the thing is, on the letter it says "this amount won't be taken off your pension before you receive it".....so presumably it will be taken off my private pension ?.......just wanted to clarify this.......Jack.

Linton

Yes - State Pension is taxable but it is paid gross. Therefore the tax code for other taxable income you receive is reduced by the amount of the SP.

Jack_Itin

Thanks, so they add both pensions together, and anything over £11, 850 is taxable.....is that correct ?

Anonymous101

Jack_Itin wrote: »

Thanks, so they add both pensions together, and anything over £11, 850 is taxable.....is that correct ?

Thats your personal allowance yes.
I'm sure you're aware it can change depending on other benefits, incomes etc.

Jack_Itin

O.k....Thanks, one last thing, the Gov. website states that my pension will be £152.50 per week.....the letter from HRMC says £147 per week, presumably the higher figure is correct, as I have now had two free years of NI contributions added, making a total of 48 years.....maybe different departments don't "talk" to each other........

kidmugsy

Jack_Itin wrote: »

O.k....Thanks, one last thing, the Gov. website states that my pension will be £152.50 per week.....the letter from HRMC says £147 per week

Maybe one figure is just more up-to-date than the other.

Jack_Itin

I notice that once you are in receipt of your pension, then you can't use the Gov. website....just for peace of mind, is there any other way to see your pension figure ? or just wait either for a letter, or until you actually get it ?

greenglide

.the letter from HRMC says £147 per week

just wait either for a letter, or until you actually get it ?

Have you received the award notice which tells you how much you are going to get (called an ANSOD - Award Notification and Statement of Details or some such these days) - this should tell how much you should get.

If you can get more from 2017/18 contributions which are not yet available this ought to tell you. In this case you should get an "initial" award which would be updated when the NI details are available later in the year. At this point you would receive any arrears.

Have you actually received the first payment yet? When you do you will get a First Payment Advice which will give details of the rate to be paid and when.

Jack_Itin

Yes, I had the ANSOD some weeks ago, £147 it does say that the figure may change.......since then the Gov. website says that the free NI credits have been added, and that I will get £152.50 per week......I receive a first, part payment on May 16 th, presumably that should clarify the higher figure.......

greenglide

... so if you have got the first payment you should have got the First Payment Advice. This is produced when the first payment is selected, normally about five or six days before the BACS payment arrives in your bank account.

Of course it will be sent second class!

mgdavid

greenglide wrote: »

... so if you have got the first payment you should have got the First Payment Advice. This is produced when the first payment is selected, normally about five or six days before the BACS payment arrives in your bank account.

Of course it will be sent second class!

It's not May 16th just yet!