State Pension Changes

Which, Prudence, will probably be matched by a loss in the value of your Pension!

 

Same here, Victoria, regarding the Tax back. I also, obviously, get taxed on my current wage which is now at such a rate it's a deterrent to working!!! I just wish they would sort out my Pensions tax, which is paid separately, so that they give me the proper amount instead of returning lumps of it back to me twice a year. Maybe, it's because, as you say, they like to earn interest on it!

 

The personal tax allowance is £8,105 and goes up to £10,500 when you're 65.

State pension always used to be paid without deduction of tax and then, if you had any other income, You were liable for declaring everything so that they could ask you for the tax.
A few years ago they changed things so that if you had any other income they told the provider of that income to deduct the tax for them - by changing your code number.

You can only receive a tax refund if you have paid more tax than you should have. If you don't have income sufficient to pay tax then a higher allowance is of no use to you.

Just as a note to anyone that may make fairly large charitable donations (Gift Aid). The charity receives from the tax man additional money equal to the tax you had paid on the money before receiving it. They give this amount to the charity even if you haven't paid tax on the income that you donated. So, if your income isn't sufficient to have paid tax but you make a Gift Aid donation, the taxman will send you a bill for that extra money they sent to the charity.

 

The problem is, Shiney, while the tax allowance is clearly defined it doesn't seem to have infiltrated into the Tax Office

 

You've just got to be firm with them

 

Yes, it's bad.

The changes are due to take place in April 2017 and in the long run they will simplify the existing rules. I just hope they don't fiddle with the pension system again in the mean-time.

 

I'd rather send the "Firm" around them to clarify their shortcomings, Shiney. My Accountant has written time and again. I had 8 different Tax Offices dealing with my affairs on retirement and it was a struggle just to persuade them to get just the one to do it all.

 

I know the feeling, ARMANDII. When I used to need an accountant, and he was good, it could take numerous letters to get things sorted out. My accountant had instructions that if he thought he was coming to he should pass it over to me. I could usually get things sorted out within two phone calls.

Fortunately, I haven't needed an accountant for years and I have got the taxman to agree that I don't need to fill in a tax return any more. It was quite easy to get him to agree that it was simply wasting time for both of us.