Taxable income in retirement?
I am 66, single, retired, and in receipt of the state pension and a small occupational pension.
In total my income from these comes nowhere near my supposed 'tax free allowance' [of about £9000 p.a.] YET, HMRC tax me on my total pension income of about £7000 p.a. and whenever I explain my situation to them, the only answer I get is: "You didn't pay tax on your contributions, so you must pay tax on your pension". Surely they aren't abiding by their own rules! – I don't get it!!!
Answer:Something is wrong with your code number I think. Can you please post how your code number is made up (from your latest notice of coding)?
Can you also let us know the weekly rate of your state pension and monthly works pension?
Answer:Actually, I think I was wrong. – I now realse that HMRC roll up the state pension with any little occupational pensions one might have [however small!]. This pushes me just over the limit. – I was believing the state one was'nt included. – Maybe it shouldn't be!! But there we are.
David F
Answer:I had the same problem with my old Mum. When they did an investigation they found she should not have been paying tax so had a refund.
As The other lady said, please give your figures so we can see. What is your tax code ?
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