Pension query

libra10

I will be 60 during October and entitled to receive my state pension. I will continue to work part-time and pay the necessary level of tax. The Pensions service have sent many forms, one about claiming extra benefits, which I have been advised to fill in, although I'm quite sure I would not be entitled. Through the years I have contributed the maximum allowance in both the Tessa and cash ISA's. The tax-free interest now brings in a nice income each year.

My question is - in order to fill in this form, do I need to state the income from these accounts as they are tax-free vehicles?

Thanks for any advice

crossleydd42

PEPs and ISAs do NOT have to be declared to the taxman as they are tax-free savings vehicles.
However, as an aside, do remember that your state pension will be paid gross and if you are liable to tax from this and other sources, you will have to pay tax on the pension. If you think this a likelihood, you can write to the taxman with an estimate of what your total likely gross income will be and they can adjust your tax code to cater for this for the remainder of the tax year. This will avoid an unpleasant surprise next tax year when they will want it back! If you've given up work, this will be compensated for with a likely overpayment of income tax, since your tax code will have assumed that you will have worked for the whole year. So, it will do not harm in contacting them to get your code put right now.

isasmurf

crossleydd42 is correct that you don't have to declare them to the taxman, but as I understand it you are asking about extra benefits and not tax.

For the purposes of claiming benefits then yes you do have declare the TESSA and ISA on these forms. They may be tax free vehicles, but thats all they are. If you didn't have to tell the Pensions service about them, then that would be a nice little way to hide your savings and gain extra benefits.

libra10

Thanks Crossley and Isasmurf for your very helpful advice. I think one of the forms I filled in did ask if I intended to carry on working and I replied yes.

It doesn't seem worthwhile to complete the benefits form, due to earnings and income, including new pension.

Thanks very much for being so helpful

ceebee_2

Remember that, when you claim your govt. pension, to have it paid each week (in advance) as opposed to every 4 weeks (in arrears).

margaretclare

ceebee wrote:

Remember that, when you claim your govt. pension, to have it paid each week (in advance) as opposed to every 4 weeks (in arrears).

Unless she happens to want it paid four-weekly - there's nowt wrong with that!

They will ask you to nominate a bank account for it to be paid into.

Aunty Margaret

crossleydd42

libra10 wrote:

Thanks Crossley and Isasmurf for your very helpful advice. I think one of the forms I filled in did ask if I intended to carry on working and I replied yes.

It doesn't seem worthwhile to complete the benefits form, due to earnings and income, including new pension.

Thanks very much for being so helpful

Thank YOU! Have a long and healthy retirement.

libra10

Have already asked to be paid weekly and nominated a bank account.

Looking forward to receiving my pension and thanks everyone for your help

djohn2002uk

Margaret, there could be something in being paid weekly in advance as you CAN lose money by opting for 4 weekly which is in arears.
I got my pension this year and because my birthday fell on a Tuesday I lost any payment for that week totally. I think on reflection that this may not have happened if I'd opted for weekly payment. Guess I'll never know now but was annoyed at the time.