State Pension taxable

Cobbler_tone

Imagine an alternative universe where what a politician said was the 100% truth.

No point trying to hang by a one off sound bite. “but you said….”

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81884298#Comment_81884298

That's really going to come back and bite her on the bum after April 2027, if not before. So much misunderstanding and so many assumptions about this seemingly simple statement.....

QrizB

Just to illustrate the taxable nature of the State Pension, this thread on the "cutting tax" forum has a state pensioner receiving £20k pa being asked for payments on account:

https://forums.moneysavingexpert.com/discussion/6655177/income-tax-payment-on-account

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81884582#Comment_81884582

I do wonder what the op did for all the previous years when their tax code included a deduction for State Pension which was less then their Personal Allowance 🤷

sgx2000

Goverment NEVER said pensioners would not be taxed…..

They have however said that anyone recieving ONLY state pension.will not pay tax…

If you have ANY private pension you will be taxed on the state pension.

But the first £12,570 will NOT BE TAXED (I.E. a TINY % of state pension will be taxed for those with a private pension)

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/81884465#Comment_81884465

Even less point since she didn't actually say it anyway. You're not going to be very far with "but Martin Lewis said that you said".

There should really be a sticky on this. Note they will ease the administrative burden, not tax burden. And they intend that those affected won't pay via Simple Assessment it does not say won't have to pay via some other method.

The actual statement was ..

"State Pension and Simple Assessment – 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 government is exploring the best way to achieve this and will set out more detail next year".

molerat

They have however said that anyone recieving ONLY state pension.will not pay tax…

And the definition of that is ? £415.44 pw / £21602 pa for 26-27 ?

Which is why it was a stupid and not really thought out statement.

sgx2000

The average pensioner with a private pension will pay an additional tax on the 'state pension' part of their income during the year 27-28 to the tune of £58….

OMG… how will the rich (those with a private pension) manage???

sgx2000

The Definition:

To qualify for this "waiver," you must receive the standard basic or new State Pension with

no other taxable income

(such as private pensions, part-time earnings, or significant savings interest).

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81885385#Comment_81885385

Not just those with private pensions. There are a considerable number of pre 2016 pensioners in receipt of just State pensions who already receive more than the personal tax allowance due to SERPS/SP2 and/or deferral at the old, much more generous rate, of 10% per year.

I've already seen questions on other boards, from those in receipt of nothing but the old State pension plus SERPS/SP2, asking for confirmation that they can safely ignore any further simple assessment tax demands that they may receive in the future.....