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Legal, pensions and money

Tax on pension?

(7 Posts)
janeainsworth Wed 18-Apr-18 17:05:38

I don’t think that’s quite right, nannarose.
It’s true that the State Pension is paid untaxed, but it is discounted against your personal allowance.
Eg, Personal tax free allowance = £11850
If your State Pension is £6000, you can then receive another £5850 from other sources (private or occupational pensions) before you start paying tax at the basic rate on the remainder of the private or occupational pension.

Nannarose Wed 18-Apr-18 16:03:19

What misleads people is that your state pension does not have tax deducted from it - but it does count as taxable income - so when you get your code, the tax is deducted from another source of income (or you pay it separately).
Best sources of information: gov.uk (which sets it out clearly) and for advice, Money Saving Expert.

maryeliza54 Wed 18-Apr-18 15:25:10

£11850 in fact

grannysue05 Wed 18-Apr-18 14:02:06

Welcome Masie
Yes pensions count as income and are taxable.
You have a basic tax free amount then everything over that is taxed on a sliding scale!
Sorry the news is a bit of a downer on this lovely sunny day!

Poppyred Wed 18-Apr-18 13:59:46

Yes it does count as income, from this April you are allowed £11,500 per annum before you start paying tax. ?

Situpstraight Wed 18-Apr-18 13:59:28

I’m afraid if your pensions take you over your personal allowance, you will be taxed. Winter fuel allowance, if given, is tax free.
At the moment!

MaisieC Wed 18-Apr-18 13:57:03

Hello everyone! I've just joined so just getting my head around the forum smile I will be retiring within the next couple years and I was wondering if pensions count as income the same as my job currently does. I've looked at sites like this tax tool but can't find much information about it. I was hoping someone here would know, or am I a little too hopefulwink

Thank you!
Masiesmile