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Paying Income Tax on State Pension

I would like to know how you feel about paying income tax on your state pension.


Since the new tax year, your state pension will be subject to income tax. This is because the Chancellor did not increase the personal tax allowance in the budget, so now with the increase we were given takes the pension rate above the personal allowance.


So don't go on planning to spend your increase as the tax man wants his share first.


Created By on 25/04/2023

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cris1117
9th May 2024 08:03:49
0
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Welcome to Tory Britain, give with one hand take away with the other hand and thinking the British public are too stupid to notice it.
Response from Scruffles made on 9th May 2024 09:51:58
It`ll be exactly the same under Labour.
Response from CaroleAH made on 9th May 2024 11:48:37 > @Scruffles
I agree, Scruffles. Keir Starmer has made so many U turns in the last year that it's a wonder he isn't dizzy!
cris1117
10th May 2024 17:29:27
0
Thanks for voting!
No point in moaning if you are not prepared to even try to change things.
parsnip54
3rd May 2024 11:20:13
0
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As I carried on working for 18 months after my due retirement date I differed my State Pension until I actually retired. Because I differed my state pension for 18 months my pension was increased as a result. With the Triple Lock in place this now puts me above the Personal Allowance and therefore now subject to income tax. This is before I take anything out of my private pension which will be taxed as income too. I’m fortunate enough to have a private pension but I had to work long and hard to make it worthwhile. Am I happy about paying income tax on it. Hell No. Have I any choice. Again no. Pensioners are always going to be an easy target.
CaroleAH
26th Apr 2023 16:18:44 (Last activity: 12th May 2023 12:08:36)
1
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According to the governent websites the personal allowance for 2023-4 is £12750.00. The basic state pension is £156.20 per week which equals £8122.40 per annum and the full new state pension is £203.85 per week which equals £10,600.20 per annum so both these amounts are below the personal allowance of £12750.
Obviously, if you have a private pension as well as the state pension then the amounts are added together and the appropriate income tax is deducted from your private pension.
Response from Woody75 made on 12th May 2023 12:08:36
I don't know how anyone gets more than the Personal Allowance on a State Pension but my Company Pension has suffered with only a 5% increase on that it effectively means that there is very little benefit after tax.
marmit
4th May 2023 14:05:08 (Last activity: 4th May 2023 17:21:59)
1
Thanks for voting!
In basic easy terms the Personal Allowance is £12, 570 per annum 2023-24

As long as you only have up to the above amount of income in the year 2023 - 2024 do not worry you will pay no tax and the taxman will not be looking for a share of it.

Please note you could also have some Superannuation added to your basic old state pension amount so it will not be the standard pension rate showing of £156.20. Your Final rate of pension will show the Superannuation amount included on the advice letter you get from the Pension Service in March of each year. Bank interest on savings will also need to be taken into account as income. Finally private pensions need to be added to calculate total income for the year end.

Always remember that State Pension is paid 4 weekly and not monthly so you receive 13 payments per annum. Private pensions are usually paid Calendar monthly so if that is the case 12 payments per month will be received.
Response from Sally - Silversurfer's Editor made on 4th May 2023 17:21:59
Hi marmit,

Welcome and many thanks for your first comment in our Forum.

If you already know your way around, then we will leave you to it.

If you are looking for some lively discussions, head on over to the Forum homepage to see what's trending right now and feel free to join in the discussions, with all our friendly members, perhaps ask a question or even start your own post.

CaroleAH
27th Apr 2023 12:13:47
0
Thanks for voting!
Sorry, the personal allowance is £12570 not £12750 as I previously quoted.

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