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How is tax paid when retired?

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Oldnproud Thu 16-Feb-23 14:06:14

OK. So on the face of it, it looks like they will have to pay approx £12.50 p/month in tax.
Could be a bit more, depending on interest on any savings/investments, I suppose. I don't know anything about those, except that they won't be very large.

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M0nica Thu 16-Feb-23 13:50:08

Yes, deducted from any other source of income they have. The state pension is never taxed.

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Oldnproud Thu 16-Feb-23 13:43:16

Thank you, Whitewave. I will try to check it for them as soon as I get the opportunity.

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Whitewavemark2 Thu 16-Feb-23 13:31:33

Yes deducted at source.

It is easy to check that their new code is correct. Go onto the HMRC site - all the information is there.

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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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