State pension but i pay tax

Seaquester

The chancellor stated nobody would pay tax on a state pension if its there only income.I only get a state pension and its my only source of income,but because I paid into NIC for 52 years (D.O.B 17.08.1952) entitling me to a pension of £1199.per 4 weeks I have a tax bill for £467 for year 24/25 which has to be paid by Jan 26.So what the chancellor said is a lie and it makes me angry as  I am being penalised for working all my life .anybody else in this situation ?

artyboy

Anyone else think that we are going to get a LOT of these threads over the coming weeks?

Cobbler_tone

artyboy said:

Anyone else think that we are going to get a LOT of these threads over the coming weeks?

I suspect over the coming years.
TBF she didn’t say from today and had her fingers crossed behind her back.

artyboy

Cobbler_tone said:

artyboy said:

Anyone else think that we are going to get a LOT of these threads over the coming weeks?

I suspect over the coming years.
TBF she didn’t say from today and had her fingers crossed behind her back.

A masterful summary 

BikingBud

All part of the pantomime.

eskbanker

BikingBud said:

All part of the pantomime.

Indeed - 2024/25: "it's behind you!"

Isthisforreal99

From the budget paper;

State Pension and Simple Assessment – The government will ease the administrative burden for pensioners whose sole incom e is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28 if the new or basic State Pension exceeds the Personal Allowance from that point. The government is exploring the best way to achieve this and will set out more detail next year.

'Small amounts of tax' yet to be defined and for the benefit of OP from 27/28 and only for new or basic state pension.

dunstonh

So what the chancellor said is a lie and it makes me angry as  I am being penalised for working all my life .anybody else in this situation ?

I suspect a lot of people are angry. Including taxpayers who are funding such decisions.  Or working families with low earners who will be paying tax for just going over the personal allowance whilst its proposed that those not working will not pay tax for earning the same amount.

The assumption that they will get away not paying tax is just that.   The published info doesn't say there won't be tax.  

Keep_pedalling

Sounds like the OP is getting the additional state pension on top of the basic SP, so they will still be paying tax in the coming years as well. 

sheramber

Seaquester said:

The chancellor stated nobody would pay tax on a state pension if its there only income.I only get a state pension and its my only source of income,but because I paid into NIC for 52 years (D.O.B 17.08.1952) entitling me to a pension of £1199.per 4 weeks I have a tax bill for £467 for year 24/25 which has to be paid by Jan 26.So what the chancellor said is a lie and it makes me angry as  I am being penalised for working all my life .anybody else in this situation ?

The chancellor stated nobody would pay tax on a state pension if its there only income.I only get a state pension and its my only source of income,

From when?

It certainly was not backdated to 24/25

It also only applies to those who get the basic amount of pension with no add ons. 

You get more than the basic amount  so will not be eligible. 

xylophone

The chancellor stated nobody would pay tax on a state pension if its there only income.I only get a state pension and its my only source of income,but because I paid into NIC for 52 years (D.O.B 17.08.1952) entitling me to a pension of £1199.per 4 weeks I have a tax bill for £467 for year 24/25 which has to be paid by Jan 26.So what the chancellor said is a lie 

No, that's not a lie she told.

As above, her statement was

The government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28 if the new or basic State Pension exceeds the Personal Allowance from that point.

The SP has always been taxable income.

The basic state pension is currently £176.45per week (£705.80 per four weeks, £9175.40 per annum).

The NSP is currently £230.25 per week   (£921 per four weeks, £11973 per annum).

At the moment, a pensioner whose sole income was either of the above would not be paying income tax - (Personal Allowance £12,570 per annum). He would not be paying income tax next year either.

You are receiving pension income higher than either of the above (£299.75 a week, £1199 every four weeks, £15,587 per annum).

This is £3017 per annum higher than your PA.

If instead of being contracted in to SERPS/S2P you had been contracted out into an occupational pension, to the extent that the pension brought you to a level of income higher than your PA, you would be paying tax. The occupational pension would be coded to collect the tax.

For example, take John who has only Basic SP but an occupational pension of £6000 a year (£500 per calendar month)

His state pension is paid gross.

His total income is £15,175 per annum.

Deduct £12,570, so £2605 taxable at 20%.  He owes HMRC £520.

The code on his pension will be such as will give him a net monthly payment of approx £456 a month.

You pay your tax in one lump sum annually - you could argue that you are in a better position than John because you can earn some interest while its in your account?