self assessment?

glitterygert

My husband has taken early retirement, and his state pension is not due for 4 years, he has quite a few investments all of which are taxed at source, will his company pension be taxed at source (he hasn't got it yet) or will he have to fill in a tax form and list all his other investments which he recieves monthly incomes from? I hope this makes sense. not very up on taxes etc.

Any advice would be most welcome, thanks

cyclonebri1

I have just taken early retirement and have spoken to my local tax office about just this subject.

I have 2 pensions, 1 personal and 1 with the company I'm just retiring from.
My company pension will have my tax allowance set against it. (Classed as my primary income). In my case all my allowance will be covered this way.

My private pension that I started to draw a few months ago is taxed at source.

All my savings that are liable to income tax are paid net therefore no self assesment required.

Best advise is speak to your tax office, I found them more than a little helpful:beer:

EdInvestor

What the tax people do is locate the provider of your biggest slab of pension income and then use that as a substitute for an employer.* They then set your allowances against that income and deduct all tax required (including state pension when due).Other income is taxed at source on full rate as appropriate.

It tends to take them a while to get all the bits and pieces collected together (during which period you can expect a shower of continuous amendments to your tax code) but they seem to get there in the end.

*Important point: the tax office pertaining to this "substitute employer/pension provider" then becomes your relevant tax office.Do not be diverted to any tax office applying to your home address.

jem16

glitterygert wrote: »

My husband has taken early retirement, and his state pension is not due for 4 years, he has quite a few investments all of which are taxed at source, will his company pension be taxed at source (he hasn't got it yet) or will he have to fill in a tax form and list all his other investments which he recieves monthly incomes from? I hope this makes sense. not very up on taxes etc.

Any advice would be most welcome, thanks

He may need to fill out a tax return to begin with until HMRC can see exactly what his total income will be including interest and dividend payments from his investments. After that they should be able to adjust his tax code if necessary.

glitterygert

thank you all so much