Recently widowed and paying more tax on £6268

Dazed_and_C0nfused

cherry76 said:

Keep_pedalling said:

cherry76 said:

She will only get 50%of her husbands nhs pension. She has her own nhs and state pension. This does not make sense. Will need to query this with HMRC. I think she said she got an extra £300 every 4 weeks on state pension.

You still have not said what her actual income is, but based on those figures her own income is nearly £38k so it looks like she now gets a widows pension of around £28k pushing her well into the higher 40% tax bracket.

This cannot be right. She will get half of dad pensions but it’s not that much £24,078.I think  £20565 is her own nhs pension. She is also getting 80% of his state pension. He was getting near £900 every 4 weeks but has been told she is getting an extra £300+ every 4 weeks. This does not seem to add up. So far she has not received her husbands 50% nhs pension. He died 7 weeks ago.

For HMRC to know about the new NHS pension the NHS pension administrator must have sent some details to HMRC.

And that normally happens just before they make a payment so it seems odd your mum hasn't received a payment yet for this new pension?

She was presumably already getting State Pension but is she now expecting to get more than she previously got?

Have you seen any paperwork which shows either the updated State Pension or amount for the new NHS pension?

Do you know for a fact what your dad was getting from his NHS pension?  It isn't inconceivable that a 50% inherited pension could be £24k.

Which if correct will mean she is almost certainly moving into higher rate territory for 2025-26.

Flugelhorn

I think the two NHS pensions + state pension will put her into 40% tax bracket  - that tax does sound about right 

[Deleted User]

cherry76 said:

Keep_pedalling said:

cherry76 said:

She will only get 50%of her husbands nhs pension. She has her own nhs and state pension. This does not make sense. Will need to query this with HMRC. I think she said she got an extra £300 every 4 weeks on state pension.

You still have not said what her actual income is, but based on those figures her own income is nearly £38k so it looks like she now gets a widows pension of around £28k pushing her well into the higher 40% tax bracket.

This cannot be right. She will get half of dad pensions but it’s not that much £24,078.I think  £20565 is her own nhs pension. She is also getting 80% of his state pension. He was getting near £900 every 4 weeks but has been told she is getting an extra £300+ every 4 weeks. This does not seem to add up. So far she has not received her husbands 50% nhs pension. He died 7 weeks ago.

Rather than saying that she will be getting an extra £300 pension every four weeks can you state the total amount of state pension that she will receive in 2025/26?

cherry76

She will be receiving £282 a week from April.

cherry76

Dazed_and_C0nfused said:

cherry76 said:

Keep_pedalling said:

cherry76 said:

She will only get 50%of her husbands nhs pension. She has her own nhs and state pension. This does not make sense. Will need to query this with HMRC. I think she said she got an extra £300 every 4 weeks on state pension.

You still have not said what her actual income is, but based on those figures her own income is nearly £38k so it looks like she now gets a widows pension of around £28k pushing her well into the higher 40% tax bracket.

This cannot be right. She will get half of dad pensions but it’s not that much £24,078.I think  £20565 is her own nhs pension. She is also getting 80% of his state pension. He was getting near £900 every 4 weeks but has been told she is getting an extra £300+ every 4 weeks. This does not seem to add up. So far she has not received her husbands 50% nhs pension. He died 7 weeks ago.

For HMRC to know about the new NHS pension the NHS pension administrator must have sent some details to HMRC.

And that normally happens just before they make a payment so it seems odd your mum hasn't received a payment yet for this new pension?

She was presumably already getting State Pension but is she now expecting to get more than she previously got?

Have you seen any paperwork which shows either the updated State Pension or amount for the new NHS pension?

Do you know for a fact what your dad was getting from his NHS pension?  It isn't inconceivable that a 50% inherited pension could be £24k.

Which if correct will mean she is almost certainly moving into higher rate territory for 2025-26.

It does seem that the administrator has already sent the details to HMRC. She has not received any pensions details from the administrator. She only got this information whilst checking her account online and does not understand it. My dad was getting approx £1600 a month nhs mention so the sum does not seem to add up.She is now getting extra state pension. Guess need to wait and see how much of his nhs pension she will get. Am clueless. I have seen the paper work for the extra state pension. She will definitely not getting £24,078 do not know where this amount comes from. She should hear from nhs pension soon, as she has not been paid since Jan. Thanks

Dazed_and_C0nfused

cherry76 said:

Dazed_and_C0nfused said:

cherry76 said:

Keep_pedalling said:

cherry76 said:

She will only get 50%of her husbands nhs pension. She has her own nhs and state pension. This does not make sense. Will need to query this with HMRC. I think she said she got an extra £300 every 4 weeks on state pension.

You still have not said what her actual income is, but based on those figures her own income is nearly £38k so it looks like she now gets a widows pension of around £28k pushing her well into the higher 40% tax bracket.

This cannot be right. She will get half of dad pensions but it’s not that much £24,078.I think  £20565 is her own nhs pension. She is also getting 80% of his state pension. He was getting near £900 every 4 weeks but has been told she is getting an extra £300+ every 4 weeks. This does not seem to add up. So far she has not received her husbands 50% nhs pension. He died 7 weeks ago.

For HMRC to know about the new NHS pension the NHS pension administrator must have sent some details to HMRC.

And that normally happens just before they make a payment so it seems odd your mum hasn't received a payment yet for this new pension?

She was presumably already getting State Pension but is she now expecting to get more than she previously got?

Have you seen any paperwork which shows either the updated State Pension or amount for the new NHS pension?

Do you know for a fact what your dad was getting from his NHS pension?  It isn't inconceivable that a 50% inherited pension could be £24k.

Which if correct will mean she is almost certainly moving into higher rate territory for 2025-26.

It does seem that the administrator has already sent the details to HMRC. She has not received any pensions details from the administrator. She only got this information whilst checking her account online and does not understand it. My dad was getting approx £1600 a month nhs mention so the sum does not seem to add up.She is now getting extra state pension. Guess need to wait and see how much of his nhs pension she will get. Am clueless. I have seen the paper work for the extra state pension. She will definitely not getting £24,078 do not know where this amount comes from. She should hear from nhs pension soon, as she has not been paid since Jan. Thanks

Assuming you are referring to money going into his bank account then I think you need to forget about what he was "getting".

Tax is based on the taxable income and £1,600/month in his bank account is £19,200/year.  If that is money hitting his account then it could easily be £30k+ in taxable income that he was getting, depending on the tax code that was being used.

It might be some income has been overstated but you definitely need to establish the facts before trying to change anything with HMRC.

If your mum delves around her tax account she should be able to see details of exactly what has been reported to HMRC for the 2024-25 tax year for each of the NHS pensions.

Rusty190

I know nothing about tax but I am widowed and my late husband was an NHS employee. 
When he died I received 3 months of his full pension then it dropped to half of his pension and will remain at that for my lifetime.
Could it be that, given your Father's death is very recent, HMRC think your Mum is getting his full pension (which she will be at the moment) and that this will continue? 

Flugelhorn

Rusty190 said:

I know nothing about tax but I am widowed and my late husband was an NHS employee. 
When he died I received 3 months of his full pension then it dropped to half of his pension and will remain at that for my lifetime.
Could it be that, given your Father's death is very recent, HMRC think your Mum is getting his full pension (which she will be at the moment) and that this will continue? 

that is a good point - there are various extras depending on the NHS scheme and whether people have taken the pension etc but possible that the 3 month short term extra pension is being estimated as being continued into  the next year;s tax for the OP - when they get the info from NHSBSA they can amend it on the tax account 

"..Plus a short term pension equal to the rate of the member’s pension in payment for the first 3 months or 6 months if there is at least one eligible dependent child"

Dazed_and_C0nfused

Flugelhorn said:

Rusty190 said:

I know nothing about tax but I am widowed and my late husband was an NHS employee. 
When he died I received 3 months of his full pension then it dropped to half of his pension and will remain at that for my lifetime.
Could it be that, given your Father's death is very recent, HMRC think your Mum is getting his full pension (which she will be at the moment) and that this will continue? 

that is a good point - there are various extras depending on the NHS scheme and whether people have taken the pension etc but possible that the 3 month short term extra pension is being estimated as being continued into  the next year;s tax for the OP - when they get the info from NHSBSA they can amend it on the tax account 

"..Plus a short term pension equal to the rate of the member’s pension in payment for the first 3 months or 6 months if there is at least one eligible dependent child"

Agree, that could well be resulting in an excessive estimate for the forthcoming tax year.

So a more realistic figure, for that new pension, might be £12k plus whatever the 2025-26 inflation increase is for the NHS pension scheme (4.1%?)

And that might have a knock on effects to the code for the original NHS pension as it may take higher rate tax out of the equation.

Flugelhorn

Dazed_and_C0nfused said:

So a more realistic figure, for that new pension, might be £12k plus whatever the 2025-26 inflation increase is for the NHS pension scheme (4.1%?)

1.7% (engraved on my brain  )