Tax on uk pensions

[sunchaser]

Next month I get the UK state pension,.which when added to my uk company pension, will take me over the £12,750 threshold at which I have to pay income tax.

Anyone know if I have to do anything, or will it get taken automatically.

All the info is there on the Government gateway thing.

Ie. both pension amounts.

[KannikaP]

It is £12570. You will have to submit a Sef Assessment return.

[dick turpin]

Don't worry HMRC will take its pound and a half

of flesh without you having to do anything. Your

state pensions will remain tax free of course, they

will simply skim off your company pension.

Edited October 20, 2023 by dick turpin

[howerde]

Log into your gateway account check the amounts are correct check your tax code, you should not need to do anything(as both pensions are taxed via paye), if the amounts shown are wrong you can amend them online. 

[noobexpat]

57 minutes ago, KannikaP said:

It is £12570. You will have to submit a Sef Assessment return.

It is called Self.

And i don't think he will.

[noobexpat]

44 minutes ago, howerde said:

Log into your gateway account check the amounts are correct check your tax code, you should not need to do anything(as both pensions are taxed via paye), if the amounts shown are wrong you can amend them online. 

Usually the state pension is paid gross but taxable via an adjusted tax code on the private pension.

[Mike Lister]

10 minutes ago, noobexpat said:

It is called Self.

And i don't think he will.

H "may" have to, we don't know.

 

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return#:~:text=who has died-,Who must send a tax return,partner in a business partnership

[noobexpat]

4 minutes ago, Mike Lister said:

H "may" have to, we don't know.

 

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return#:~:text=who has died-,Who must send a tax return,partner in a business partnership

I don't think it will rain today.

It may rain today.

 

You see the difference? one is an opinion.

[Mike Lister]

Dear God, is there no end to this nonsense!

[KannikaP]

29 minutes ago, noobexpat said:

It is called Self.

And i don't think he will.

 

1 hour ago, KannikaP said:

It is £12570. You will have to submit a Sef Assessment return.

Sorry for the typo........SELF.

[noobexpat]

9 minutes ago, Mike Lister said:

Dear God, is there no end to this nonsense!

Then don't incorrectly try to correct. 

Edited October 20, 2023 by noobexpat

[KannikaP]

12 minutes ago, noobexpat said:

I don't think it will rain today.

It may rain today.

 

You see the difference? one is an opinion.

Yes, thank you for the clarification. 

[noobexpat]

Just now, KannikaP said:

Yes, thank you for the clarification. 

No probs, but that one wasn't aimed at you.

[Chivas]

1 hour ago, noobexpat said:

Usually the state pension is paid gross but taxable via an adjusted tax code on the private pension.

Correct

[Chivas]

Out of interest because more than a few on all media seem to think State Pension is tax free

Its not

It forms part of "income" which when it exceeds the annual tax allowance (and is outside of tax wrappers) is very much taxable

HMRC have plenty of experience over collection lol

[Baht Simpson]

Just check your State Pension is shown on your Govt. Gateway account. They will then collect tax by adjusting your code. You will only have to file a self-assessment if you have non-pension income above the allowable thresholds.

Edited October 20, 2023 by Baht Simpson

[Chomper Higgot]

HMRC will tax you on the basis of an assumed income, they’ll issue you a new tax code. 
 

You can call then or write them to get this corrected.

 

Up to you whether or not you tell them you are in Thailand, those wishing to receive their annual cost of living increases usually don’t share that piece of information.

[Eff1n2ret]

HMRC assume that you get the annual increases in the State Retirement Pension even if the DWP know that you are living in Thailand and don't pay the increases. You have to check your tax assessment carefully every year. There was a thread about this not so long ago, a few people discovered that they had been overpaying tax for years. Joined-up government it isn't. 

[sunchaser]

Thanks for all the replies.Guess I will wait and see if they take any tax off my company pension next month.Should be about £50.Hopefully they will realise I am living in Thailand and don't get an increase in state pension.My thai address is on the Gatekeeper website.

[Seppius]

On 10/20/2023 at 2:20 PM, dick turpin said:

Don't worry HMRC will take its pound and a half

of flesh without you having to do anything. Your

state pensions will remain tax free of course, they

will simply skim off your company pension.

Exactly right

[lungbing]

My Thai address is on the Gateway website too.  But every year HMRC award me that year's increase on my pension and tax me accordingly.  Of course I don't get the pension increase, only the tax increase and then they mess me about for months as I try to get them to understand.

[sometime]

Not all things to do UK tax are bad, last year I received a letter to my Thai address with a cheque for a tax refund that I wasn't expecting  , I sent the cheque to family & had it paid into my UK bank account

[noobexpat]

3 hours ago, sunchaser said:

Hopefully they will realise I am living in Thailand and don't get an increase in state pension.

You may want to complete form P85 which tells hmrc you've left the UK. I did it for tax reasons but its reasonable to assume that the info will ensure you don’t get the state pension increases.

[noobexpat]

1 hour ago, sometime said:

Not all things to do UK tax are bad, last year I received a letter to my Thai address with a cheque for a tax refund that I wasn't expecting  , I sent the cheque to family & had it paid into my UK bank account

Thats funny ...they also tried to send me a cheque here. Never arrived. Tried again, still no cheque. Third time they allowed me to claim it electronically- got it 3 days later!

Edited October 21, 2023 by noobexpat
spelling

[Chomper Higgot]

This is of interest to people who are in receipt of a UK State Pension but no other taxable income. 
 

Particularly to those who are in receipt of SERPs enhancements.

 

Essentially, you may now be due to pay tax on your income the bill for which will accumulate since there are no direct means to tax incomes that are solely State Pension.

 

The root cause is the freeze to the tax threshold, creating a stealth tax on low incomes that have risen with inflation.

 

https://www.theguardian.com/money/2023/oct/21/uk-pensions-warning-dont-get-caught-by-an-out-of-the-blue-tax-bill

[noobexpat]

5 hours ago, Chomper Higgot said:

This is of interest to people who are in receipt of a UK State Pension but no other taxable income. 
 

Particularly to those who are in receipt of SERPs enhancements.

 

Essentially, you may now be due to pay tax on your income the bill for which will accumulate since there are no direct means to tax incomes that are solely State Pension.

 

The root cause is the freeze to the tax threshold, creating a stealth tax on low incomes that have risen with inflation.

 

https://www.theguardian.com/money/2023/oct/21/uk-pensions-warning-dont-get-caught-by-an-out-of-the-blue-tax-bill

The term is called fiscal drag.

Not just serps, but possibly S2P which replaced it. 

[Mutt Daeng]

22 hours ago, Chomper Higgot said:

This is of interest to people who are in receipt of a UK State Pension but no other taxable income. 
 

Particularly to those who are in receipt of SERPs enhancements.

 

Essentially, you may now be due to pay tax on your income the bill for which will accumulate since there are no direct means to tax incomes that are solely State Pension.

 

The root cause is the freeze to the tax threshold, creating a stealth tax on low incomes that have risen with inflation.

 

https://www.theguardian.com/money/2023/oct/21/uk-pensions-warning-dont-get-caught-by-an-out-of-the-blue-tax-bill

Good post.