I've been getting this for quite a long time and have just started drawing my state pension but also draw a private pension. I couldn't understand why I was paying so much tax so rang them. I really didn't realise that your pip/dla is calculated in with your pensions and the amount you get is taken off your personal allowance!!! So now as pensioner I am paying more tax than I have for years!! Maybe I miss understood, but I thought pip/dla was tax free?

12 Replies

  • It is taxfree, I get DLA, and do not pay tax on it. M xx

  • Yes, it is tax free!

  • Thanks for your reply but that's what they told me my state pension and pip is taken from my personal allowance so I pay more tax from my private pension x x

  • The state pension is taxable, as is your private pension. So anything above £10,000 a year will be taxed and if getting the state pension has tipped you over then it will trigger paying extra tax. The DLA/PIP shouldn't count. You can get overpaid tax back, so don't despair. Perhaps book a appointment with your local citizens advice and they'll explain how you can do that as there aren't any local tax offices anymore and the telephone service is useless. Whatever you do don't use one of the companies that advertise that they'll get you a tax rebate as they'll take a lot of it in fees.

  • I'm not taxed on PIP..... yet! Ian Duncan Smith was making mutterings of taxing PIP back in the autumn but hasn't initiated it. I've not received any notification saying the contrary either.

    Could it be that your state pension & your private pension have taken you over the tax threshold? This may be helpful to read gov.uk/tax-on-pension. Otherwise the only thing I could suggest is you speak to your accountant if you have one or a financial advisor about it.

    Something else to consider is PIP is only paid up to 64.

    I'll have a look & see if I can find any more info.

  • I think the last part of this is slightly incorrect if you are receiving pip at 65 you carry on getting it the same as dla it does not stop as long as you remain elegable

  • Hello dmags I Think you misunderstood nomoreheels I think what was being said was your not eligible to start a pip procces after 64 of cause people already on pip will continue to receive it.😄

  • Each interpretation is sort of right but thanks Valentina. Fizbom didn't give her age & it wasn't clear of which she is in receipt of, DLA or PIP. However.... if she's under 65 on a specified date & receives DLA she may be reassessed for PIP but if she's over 65 & already in receipt of DLA she'll continue to receive it whilever she's eligible. The same applies for PIP, if she is in receipt of it before she's 65 she'll continue to receive it so long as she's eligible. So as Valentina said she couldn't apply for PIP if she's over 64, this was the reason for mentioning it though I agree I could have been clearer. However as this wasn't the reason for posting I didn't think it necessary to go into so much detail. I hope this clears it up!

  • Hi

    Information on this link lists taxable and non taxable items citizensadvice.org.uk/tax/w...

    Best wishes


  • Thanks to everyone who andwerd my question I will look into every thing you have mentioned xxx

  • Fizbom, as far as I know DLA is NOT means tested so I would assume that PIP is as well.......having said that a neighbour of mine who is on DLA had his pension reduced due to the massive sum of £250.00 per year from a will of an old friend. So maybe your deduction is due to your personal pension. When I retired I had a 'retirement savings' fund through my employer. Due to the world ressession my saving were wiped out all but £200! Life can be soooooo unfair sometimes can't it?

  • Certainly can!! Xx

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