Officially An Old Git Tomorrow!

You'll be paid free of income tax, and you'll most likely need to do a tax return. HMRC do have access to your state pension payment record so may issue a tax notice, if not it will be your responsibility. Being self employed it now becomes part of my return anyway so easy peasy, l just advise the accountant. You can get a form from DWP, can't remember the number, which is effectively a P60 statement of pension paid in the relevant tax year

 

.....and many happy returns for tomorrow!

 

Happy birthday from someone approaching 72!

My wife doesn't work and her pension is below her personal allowance, so she has transferred part of her personal allowance to me to reduce/prevent tax payment. My "private pension" is drawn from a SIPP and they apply my tax code and pay any tax due. Maybe your pension provider will do the same?

 

I assume you'll be getting a part pension pay to get you to the full pension pay date. At which point you will be paid your pension every 4 weeks.
The Tax Office will send you a tax notice around the same date you get your first part pension pay.
It will list your state pension and all your private pension/s and deduct your tax allowance from the total.
Your tax code will then be amended on your private pension/s to account for the tax owed.
You will be paid your full state pension every 4 weeks but your private one/s will have the deduction/s applied.
No need to fill in a tax return.
I started getting my pension a couple of months ago and this is how it was handled. All very easy. Enjoy

 

HMRC aren't allowed to deduct tax from a state pension and here comes the problem....

State pension is rising due to the triple lock guarantee.
Personal allowances are frozen which is an underhand way of raising taxes but looks nicer.

IF.... the numbers end up giving a higher income than allowance then as ONLY a state pension recipient there has been talk of letting you off up to say £1000 over.

If you have saved and paid into a private pension, then of course you will be robbed to the maximum at every opportunity.

Sad situation really ...... I personally couldn't sell the idea of private pensions to the younger generation based on how I see it now.

Don't get me on about pension credit........
Fail to pay in sufficiently and we'll give you that top up for free

Incentives for personal saving and retirement seem to be a thing of the past!

 

@johne:
All the best for your new stage of life.
There was one famous musician, called Udo Jürgens who sang the song:
"Mit 66 Jahren, da fängt das Leben an....". - " At 66, that's when life beginns ...".

Enjoy your life!

 

I can't help regarding advice on your tax situation since, obviously, our tax laws differ greatly, but I do want to wish you a Happy Birthday, good health and congrats on catching the brass ring.

I went "out to pasture" in April 2019.

Loving it!

 

Sorry to bring that to mind.

With state pensions going up and the personal allowance standing still, I don't think I'll have that share of my wife's allowance for long!

 

Belated wishes for a happy birthday.As has been mentioned HMRC pay all state pension payments at full rate in arrears in case you die so that they don't have to try to get any money back from your estate.They will adjust your tax code immediately and will usually pass this on to your private pension providers.If you worked this 2024 tax year and have earned over the £12750 allowance then this amount will be taken into account as well for future tax liability.Even though they pay the state pension tax free they count this as income regardless.I have just had a £1800 tax bill for 2023-2024 for this very reason.I would also look into putting any savings that you may have into ISA's then the interest is tax free.

 

You will pay any tax due via your private pension provider. They will get a new tax code for you from HMRC.

 

I’m a bit late on this one, but can confirm what others have said. Your state pension will be added to any private pension(s) you have and the total will be subject to normal tax rules. I.e. your tax allowance deducted and then normal 20 or 40% tax applied.

 

100% agree,,it really rips my knickers.