A state pensioner got in touch to ask how their income would be taxed
has clarified the rules for how it calculates tax on the state pension and other pension income. A taxpayer queried about their Self-Invested Personal Pension , asking: 'I have a SIPP drawdown with a regular amount which is the same each month. However I am allowed to request an ad hoc payment on top of my normal amount. 'Would
then assume this would be each month or check with my pension provider?' An representative said in response: 'We will use the information sent to us by your pension provider and adjust your record accordingly.' The taxpayer further asked if a one-off payment would be taken into account, to which advised: 'It should just be taxed as a one off payment. I assume your full personal allowance is already set against the monthly payment you receive? If this is the case, the one off ad hoc payment should just be taxed at the basic rate.' The individual confirmed they have multiple pensions in addition to their state pension and are not in the 40 percent tax band.
stated that they would be taxed at 20 percent if they were not a higher rate taxpayer. Martin Lewis has recently encouraged those receiving state pensions or planning for their retirement to check if they could enhance their payments by topping up their National Insurance . A follower of the Money Saving Expert site recently shared how they were set to boost their payments by £60,000 after topping up. The full new state pension currently stands at £221.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
HMRC advice issued to state pensioners over 'proof of pension' lettersHMRC officials have issued some simple information on X, formerly Twitter, after a taxpayer asked the department for advice about a proof of pension request over travel expenses
Read more »
HMRC guidance to DWP state pensioners seeking 'proof' lettersA taxpayer reached out to the tax department to discuss their query
Read more »
HMRC issues guidance to state pensioners on obtaining proof of incomeThe taxpayer reached out to the financial service and tax department via X, formerly Twitter, on August 13 (Tuesday) to discuss the query with them.
Read more »
DWP state pension warning with HMRC payment changes this monthBenefit recipients for Universal Credit and Child Benefit are among those recommended to watch their bank accounts
Read more »
HMRC adjusts late payment rules following Bank of England's interest rate cutThe late payment rates will be changing next week for HMRC, with interest dropping for the thousands who owe tax
Read more »
DWP and HMRC to pay benefits early this week for Universal Credit, PIP and moreSome people will get their money early this week because of the August bank holiday
Read more »