We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Tax on pension

2»

Comments

  • SacredStephan
    SacredStephan Posts: 240 Forumite
    Sixth Anniversary 100 Posts Photogenic Name Dropper

    Is your MIL receiving Attendance Allowance (which is not taxable) or Funded Nursing Care? Do you have LPA in place?

  • J_B
    J_B Posts: 6,982 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic

    She gets AA not FNC - yes 'we' have LPA (Mrs B and her sister with me as the 'reserve' or whatever it's called)

  • dunstonh
    dunstonh Posts: 121,055 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • german_keeper
    german_keeper Posts: 516 Forumite
    Seventh Anniversary 500 Posts Name Dropper

    Just trying to interpret the reason for your original post, maybe wrongly, going into a care home should have no effect on her tax position.

    As her husband died a couple of years ago she should have received annual P60 forms for all her sources of income showing taxable income and tax deducted. HMRC liaise with pension companies and DWP and via the use of tax codes HMRC attempt to deduct the correct amount of tax on an ongoing basis. Then at the end of the tax year, they will do a year end reconciliation and take action to correct under and over payments. Tax year ends on April 5th but the reconciliation exercise can take several months.

  • J_B
    J_B Posts: 6,982 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic

    «Just trying to interpret the reason for your original post»

    We've just done our own tax returns and suddenly wondered if M i L needed to do one, but it seems we're worrying unnecessecarily (which I don't seem to be able to spell!

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.8K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.4K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.