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How is tax paid when retired?

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Oldnproud Thu 16-Feb-23 13:29:23

When pensions rise this year, it looks like an elderly relative might be pushed into the lower tax bracket.

They have just received a letter from the tax office giving a tax code, and instructions that if the code is correct, there is no need to contact the tax office.

Can anyone advise me on how to check that the code is correct, and what details would be needed in order to do it?

Also, assuming that they do have to pay tax, is it likely to be deducted at source from the very small private pension they receive?

They are in quite a flap about it, and will want/ need me to deal with any issues relating to this for them, so I would really appreciate any advice you can offer.

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Germanshepherdsmum Wed 22-Feb-23 14:17:49

It’s no different to receiving a salary increase - you get more money, you pay more tax.

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Susie42 Tue 28-Feb-23 11:22:19

Germanshepherdsmum, I realise that more money means more tax, I was saying that the government gives with one hand and takes away with the other. I had a small increase in my state pension which was completely wiped out by a change of my tax code.

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Cabbie21 Tue 28-Feb-23 13:52:10

How would you prefer the system to work, Susie?

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Susie42 Wed 01-Mar-23 18:26:45

I just wish the whole tax system was simpler for both individuals and companies.

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Cabbie21 Wed 01-Mar-23 23:08:34

Agreed.

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