Pension income is taking mum over her yearly personal allowance
in Pensions, annuities & retirement planning
22 replies 1.7K views
Hello - my mum is 79 this year and receives a fairly decent pension following the death of my dad four years ago. The pension she receives takes her over the personal allowance and she therefore receives a fairly hefty tax bill in January each year. Does anyone know if the other benefits pensioners receive (i.e. winter fuel payments/cold weather payment etc) goes towards her personal allowance. It seems crazy that these benefits are available, only for pensioners to get taxed on them! Thank you.
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Cold weather payment only seems to be for people on benefits so does Mum receive it given her "fairly decent pension"?
Does Mum receive her pension monthly? Tax is normally deducted from each pension payment. It seems odd that she gets a hefty tax bill in January.
Employers/pension payers can only deduct a maximum of 50% tax so a K code can mean insufficient tax is deducted during the year.
She has received a tax bill every year (around October, payable by the end of January) since my dad passed away. Interesting that you feel she shouldn't be receiving a tax bill.
My state pension is just under the threshold but my 2 tiny private pension takes it over and thats where they deduct the tax
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We don't know how the OP has worked it out. I get paid weekly and do X * 52 / 12 to get my monthly maybe the OP did the same but (around £1,100) does seem like a guess.