Self Assessment?

Rikey

I started receiving the State Pension this current tax year. I’m also receiving a private pension. Combined, these will push me over the personal allowance. I read somewhere that if I inform HMRC now, they will instruct the private pension provider “to deduct from monthly payments” tax due on my State Pension along with any tax liable on the private pension, meaning I won’t have to send in a tax self assessment. Is this correct?  

Dazed_and_C0nfused

Based on what you've posted there should be no need for you to complete a Self Assessment return.

How much will your State Pension (for the first part tax year) and private pension be in the tax year to 5 April 2023?

Rikey

Thank you for replying. Private pension about £12k (which just about wipes out my personal allowance) and state pension about £8k. 

[Deleted User]

Rikey said:

Thank you for replying. Private pension about £12k (which just about wipes out my personal allowance) and state pension about £8k. 

All being well the code operated currently against your private pension will be reduced by the annual state pension entitlement. Using 8000 currently your remaining allowance will be 4570 - a code of 457L to be operated against your private pension. No need whatsoever for self assessment. This will be operated on a month 1 basis hopefully. You may end up with a small overpayment of tax in this year which will be reviewed by HMRC.

Dazed_and_C0nfused

Rikey said:

Thank you for replying. Private pension about £12k (which just about wipes out my personal allowance) and state pension about £8k. 

This should be dealt with via a reduced tax code so you pay the tax through your private pension.

Have you checked your Personal Tax Account to see what your latest tax code is?

Rikey

Thank you. Yes indeed, HMRC have indeed reduced my tax code to reflect the State Pension.