pension

[gradyjackjacob]

I receive the top rate of PIP and i was wondering when i get my state pension in august do i have to pay any tax.

[AgedCrone]

From Age U.K.:

PIP does not depend on National Insurance contributions, is not affected by your income or savings, and is paid on top of most other benefits or pensions. It is payable whether you work or not and is not taxable.

[gradyjackjacob in reply to AgedCrone]

Thank you for your reply,i,ve only just realised i asked this question before i think old age is catching up with me.

[AgedCrone in reply to gradyjackjacob]

I know…depressing isn’t it…..it caught up with me 20+ years ago when RA found me!

Never mind…it could be worse….we could be stupid…but we’re not!!!

[gradyjackjacob in reply to AgedCrone]

I totally agree ,we might be stiff but we are not stupid.

[Seatgeorge in reply to AgedCrone]

You will if added together comes to 12k a year google it

[AgedCrone in reply to Seatgeorge]

Everybody is allowed an income of £12,500 income tax free. If your State Pension takes you over that sum…say from a job, a company or a private pension…Income Tax is payable,& will be deducted from whichever of those income sources is the highest…BUT……as the para from Age UK explains, PIP is not Taxable no matter how much income you have….or where it comes from.

You can check that on the Age U.K. website

[gradyjackjacob in reply to AgedCrone]

That,s really useful,many thanks.

[3LittleBirds2 in reply to AgedCrone]

I will second this also, PIP is not means tested or taxable.

[mld78]

hi

PIP is never considered as income so not taken into account for tax purposes

[gradyjackjacob in reply to mld78]

Thank you for your reply.

[Hidden]

Your PIP is not counted in your tax allowance. These are the income tax bands for 2023/24:

gov.uk/income-tax-rates

[gradyjackjacob in reply to Hidden]

Thanks for your reply

[Chrissycl]

State pension is taxable, so if you have a works pension , they will take the tax if that if it puts you over your personal tax allowance

[gradyjackjacob]

I,m 31 pounds over the tax threshold

[Hidden in reply to gradyjackjacob]

You’ll just get taxed on that then. The tax allowance wasn’t raised this year so I think rather a lot of people will be ‘just over’.

[Hidden]

Have just read that this tax threshold has been frozen until 2027/8 so you will pay more tax each year as your pension(s) increase with inflation 🤬.

obr.uk/box/the-impact-of-fr....

[gradyjackjacob in reply to Hidden]

The tax man always comes out top.

[Hidden in reply to gradyjackjacob]

I was quite shocked to be honest 😯. It’s effectively a financial cut for people on low incomes..

[gradyjackjacob in reply to Hidden]

As usual.