New state pension, private pension & tax forms?

Supergran16

I am due to get my state pension in March 2027, I also have a very small private pension of £200 per month. Following the recent budget I am confused about self assessment forms? Will I have to complete one each year? I am baffled as HMRC are aware of my private pension & future state pension so I can't see the point! Please advise. Tia
 

flaneurs_lobster

Any tax due would be taken from your private pension by PAYE - HMRC will issue a new tax code to your pension company when your SP goes into payment.

There should be no need for Self Assessment if this is your only income.

molerat

When you start your state pension your tax code set against the other pension will be reduced to take account of the state pension.  In most cases it all works through the PAYE tax system, the same as if you have two jobs.  There is rarely any form filling, this forms thing in the news lately is all about those only on the state pension where there is no other option for deducting any tax due.

Albermarle

Supergran16 said:

I am due to get my state pension in March 2027, I also have a very small private pension of £200 per month. Following the recent budget I am confused about self assessment forms? Will I have to complete one each year? I am baffled as HMRC are aware of my private pension & future state pension so I can't see the point! Please advise. Tia
 

No need for self assessment. 
Your private pension provider will be issued with a tax code and that pension will get taxed around £40 a month.( assuming you will get the full new state pension) 
Your State Pension will be paid in full with no tax.

dunstonh

Following the recent budget I am confused about self assessment forms?

There is no change as a result of the recent budget.

 I am baffled as HMRC are aware of my private pension & future state pension so I can't see the point!

Exactly,  which is why you wont get one (unless there are other triggers).

dever33

You only need to do a self assessment if HMRC tells you to or if your tax cannot be collected through your tax code. Most people with a state pension and a small private pension do not need yearly forms.

HMRC will normally adjust your tax code so the £200 per month is taxed correctly. If that works, no self assessment is needed. If they ever need extra information, they will write to you directly.

mcbishere

Hi,
Being a newbie I am not sure if this is the right thread for my question. So if not please advise me which I should go to.
Regarding the latest "state pension only will not pay tax" statements coming through. I have not seen any clear indication if I will pay tax on my state pension in the following scenario.
I get that if the state pension goes over the tax threshold no tax will be charged, but... I also have a private draw down pension. So if I draw down a lump sum, once the tax is paid on the 75% that is not tax free, is this draw down considered income that would mean that the state pension would get taxed too? So, if I do not draw down I pay no tax, but if I do draw down the state pension and the draw down get added together and taxed accordingly.
Seems a bit harsh, after all we pay tax on what we put in private pensions, I do recall tax relief being in there somewhere, but sure I paid tax as it was still part of my salary, and not taken out prior to PAYE being applied, at least I think.
So a complex question. Mind you if they made state pension tax exempt then no confusion, as I just pay on my drawdown. 
Am I right? 
Confused but hoping you guys can help

molerat

Loads of threads on the subject.  The answer is no one knows as nothing has been decided.  RR has painted herself into a corner with badly thought out comments in various interviews and I can see a radical rethink on the policy before it comes into effect.

flaneurs_lobster

mcbishere said:

So a complex question. Mind you if they made state pension tax exempt then no confusion, as I just pay on my drawdown. 

The actual mechanism for exempting (most) State Pension payments from being taxed has yet to be decided.

At the moment all pension payments are regarded as taxable income (other that any tax free payments) so there is no discrimination between State and private pension income.

Most people's State pension is at or around the personal allowance for income tax, so any pension above this will be taxed as per.

Not sure you are quite understanding how your personal allowance would actually be applied to your income. Are you suggesting that the SP is exempted from any consideration of taxable income and that you should then get another £12,570 of tax-free income?

If so, dream on.

mcbishere

In response to Flaneurs,
Although I wouldn't say no, you are right that wouldn't happen. I am just pondering the fact that after the next rise most SP will then be over the now static PA, and in theory you should pay tax on the part over the £12570. So far, so hmm. But then the chancellor says that the part over the threshold would not be taxed (unless I misunderstood). So I am trying to work out if you then earn in some way anything else, that would be taxed as normal (including any drawdowns), but I was curious if the "extra" SP that she said will not be taxed will then get added to other earnings and get taxed after all, or whether that part will remain tax exempt, and the tax applied only to the additional earnings. It was just me trying to get it clear in my mind, though as others have said, nothing is final yet anyway. Probably just have to wait and see. 
Nothings more certain thn death and taxes they say.
But thanks to you all for taking the time to reply

sheramber

mcbishere said:

In response to Flaneurs,
Although I wouldn't say no, you are right that wouldn't happen. I am just pondering the fact that after the next rise most SP will then be over the now static PA, and in theory you should pay tax on the part over the £12570. So far, so hmm. But then the chancellor says that the part over the threshold would not be taxed (unless I misunderstood). So I am trying to work out if you then earn in some way anything else, that would be taxed as normal (including any drawdowns), but I was curious if the "extra" SP that she said will not be taxed will then get added to other earnings and get taxed after all, or whether that part will remain tax exempt, and the tax applied only to the additional earnings. It was just me trying to get it clear in my mind, though as others have said, nothing is final yet anyway. Probably just have to wait and see. 
Nothings more certain thn death and taxes they say.
But thanks to you all for taking the time to reply

Or, if you have any income apart from the normal rate of state pension all the state pension  and the other income will be taxed. 

Maybe we will find out one day.