Tax on pension

[Deleted User]

sheramber said:

17182 +1373 = 18555
less                    12570
                            5985 @ 20% = 1197 tax due.

Those 20ps all add up!

lincroft1710

p00hsticks said:

lincroft1710 said:

HardWorker_55 said:

On her tax bill it shows - Private pension scheme £1373.52 / State pension £17182.88 / Untaxed interest £102.00 / Personal allowance £12570.00 . My Dad has passed away so my Mum receives some of his pension but has no other income amounts   

 

That state pension amount seems high

It's around £330 a week - about the highest I think it could be under the old pre-2016 rules but not unbelievable.
The OP says the recipient and inherited much of her late husbands pension and this can significantly boost the amount (my mothers went from £106 to £296 a week when my dad died).  

Thanks, I didn't know about that

Dazed_and_C0nfused

Isthisforreal99 said:

Possibly a large K code in operation and as PAYE can only collect 50% of the pension source then an underpayment will arise.

As above - need some figures.

Good shout 😉

HardWorker_55

lr1277 said:

I know you say your mum doesn't have much money but does she get more than £1000 per year in savings interest?

If she does this will affect her total income and hence the amount of tax she pays.

Edited to add: Does she have any other (untaxed at source) income? If so would you care to give us some details?

I speak from experience of helping my mum with her tax affairs.

Thank you for your comments to answer these, no she does not get £1000 per year in savings interest, it is £102 and she has no other incomes only the pensions 

molerat

p00hsticks said:

lincroft1710 said:

HardWorker_55 said:

On her tax bill it shows - Private pension scheme £1373.52 / State pension £17182.88 / Untaxed interest £102.00 / Personal allowance £12570.00 . My Dad has passed away so my Mum receives some of his pension but has no other income amounts   

 

That state pension amount seems high

It's around £330 a week - about the highest I think it could be under the old pre-2016 rules but not unbelievable.
The OP says the recipient and inherited much of her late husbands pension and this can significantly boost the amount (my mothers went from £106 to £296 a week when my dad died).  

£398.55 is the max, £176.45 basic + £222.10 S2P.

Dazed_and_C0nfused

HardWorker_55 said:

lr1277 said:

I know you say your mum doesn't have much money but does she get more than £1000 per year in savings interest?

If she does this will affect her total income and hence the amount of tax she pays.

Edited to add: Does she have any other (untaxed at source) income? If so would you care to give us some details?

I speak from experience of helping my mum with her tax affairs.

Thank you for your comments to answer these, no she does not get £1000 per year in savings interest, it is £102 and she has no other incomes only the pensions 

Her pension income is now so much that she won't be able to benefit from the savings starter rate band but does get the savings nil rate band (aka Personal Savings Allowance) so the first £1,000 of her interest would be taxed at 0%.

Which is possibly a pipe dream at the moment but worth understanding.