Tax on state pension

friendlygingercat

Tax is a legalised form of theft

How do you work that out?

To be a net contributor you need to pay £17k a year in taxes, and even that is an average which won’t take account of any expensive medical treatment that individuals might need at various points in their lives. Most people take out more than they pay in. Who is stealing from whom?

mum2three

Brahumbug

friendlygingercat

Tax is a legalised form of theft

Theft? So you don't want schools, hospitals police, defence, roads etc,?

Indeed, this is what our taxes should be spent on. However, our present government thinks our taxes are meant to benefit those in foreign countries, not our own.

Yes indeed 👏👏👏👏👏

Brahumbug

friendlygingercat

Tax is a legalised form of theft

Theft? So you don't want schools, hospitals police, defence, roads etc,?

Indeed, this is what our taxes should be spent on. However, our present government thinks our taxes are meant to benefit those in foreign countries, not our own.

friendlygingercat

Tax is a legalised form of theft

Theft? So you don't want schools, hospitals police, defence, roads etc,?

I pay tax on my state pension as it is more the personal allowance of £12,570; the tax is taken from company pensions.

I also have ISAs as this is away of avoiding paying tax on savings.

Tax is a legalised form of theft

If you have other income besides the state pension then they will adjust the tax code to recover the tax owed. If the only income is the state pension then HMRC may just send a simple assessment calculation after the end of the tax year. Unemployment benefit is taxable. Have a look at this link : www.litrg.org.uk/pensions/state-pension/tax-state-pension/how-tax-collected-state-pension#:~:text=You%20will%20only%20usually%20pay,to%20be%20in%20self%20assessment.

Obviously I meant £12500 per annum , not 12500k .

All pensions are subject to tax over and above the personal allowence . If the person has a private pension any tax liable will be deducted from that . If the state pension is over 12500k an ( as some state pensions which have SERPS added are ) and there is no, or insufficient private pension to tax then the tax needs to be repaid as it isn't deducted from pension payments.

Yes the tax comes off a private pension.

I receive Attendance Allowance, and for some reason, it is not taxed. The other two pensions are.

Some, but not all, state benefits are taxed.

Your state pension is added to your private pension and if the combined sum is over £12,500 yes it is subject to tax.

Yes,, state pension now if it’s more than the stated tax free allowance.

But it doesn't come off your state pension but your other pensions??
Is that correct?

Yes, anything over £12,570 is taxable at 20%.

If your husband’s state pension is more than the personal allowance (£12.5K) he will have to pay tax on it, like everybody else.