Self Assessment & Pensions

BOOTHY6024

Hi there. I'm just in the process of setting up as a sole trader but I'll also be receiving a medical retirement pension. Will this affect what I have to pay in terms of tax as the assessment asl for the information. Presumably my pension will already be taxed at source?

Many thanks, Chris. 

Dazed_and_C0nfused

BOOTHY6024 said:

Hi there. I'm just in the process of setting up as a sole trader but I'll also be receiving a medical retirement pension. Will this affect what I have to pay in terms of tax as the assessment asl for the information. Presumably my pension will already be taxed at source?

Many thanks, Chris. 

If your pension is taxable then it needs to be declared on your tax return along with any PAYE tax deducted.

The pension will be included when calculating your tax liability and you will get credit for any tax deducted.

A Self Assessment return is to declare all taxable income, you don't pick and choose.

tightauldgit

BOOTHY6024 said:

Hi there. I'm just in the process of setting up as a sole trader but I'll also be receiving a medical retirement pension. Will this affect what I have to pay in terms of tax as the assessment asl for the information. Presumably my pension will already be taxed at source?

Many thanks, Chris. 

You should declare it and it will be considered as part of your total income - but any tax you've already paid on the pension will be taken into account. You won't be taxed double but if your income from business and the pension combined takes you over any tax thresholds you might find you need to pay a little more to account for that as I presume the pension would be taxed at standard rate.