Tax on pension

SacredStephan

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

J_B

https://forums.moneysavingexpert.com/discussion/comment/81857106#Comment_81857106

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

https://forums.moneysavingexpert.com/discussion/comment/81857010#Comment_81857010

If its monthly, it will also fall under PAYE.

german_keeper

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

«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!