The State Pension is not my only income but it is nowadays almost my only taxable income. I am still a bit over the tax free allowance for another year or two yet in respect of dividends for shares held outside of my ISAs and my SIPP and that will not change much because there is a big capital gain tied up in the shares held in certificates and I need to judge whether it is worthwhile paying CGT or the dividend tax. The one being a one off hit and the other an ongoing one makes it a fine balance.XFool wrote:Indeed it seems so: https://www.gov.uk/tax-on-pension/how-your-tax-is-paidDod101 wrote: No. Lootman is correct. My State Pension is paid gross (they all are I think) and for me to pay any tax due I need to do a self assessment and pay the tax the following January for tax due to the previous 5 April.
If the State Pension is your only income
You’re responsible for paying any tax you owe. Fill in and send a Self Assessment tax return if you owe anything.
I must be remembering how things were before The Boy George got his hands on them.
I submit a self assessment form online but the amount due either way is rather trivial and I do not really know why I need to. It is all automated online so I suppose it does not cost much for HMRC to collect my pittance.
Dod