Anyone who receives both a private pension and the state pension will possibly need to complete a self assessment tax return at the end of the tax year. This can be quite complicated for pensioners to tackle on their own. If your only income is the state pension you will be responsible for paying tax which you owe and therefore you will need to complete a self assessment tax return and submit it on time.
SELF ASSESSMENT TAX RETURN WHEN PENSION AND WORKING
If you are receiving a pension but continue to stay in work tax will be deducted from your earnings and state pension by your employer under the PAYE system. However, if you work in a self-employed capacity you will need to complete a self assessment tax return to declare your total income. It can be quite complicated to complete a self assessment tax return, especially if you have never had to complete one in the past during your working life, however at The Accountancy Solutions we can help you to complete the relevant forms and to ensure that you don’t pay any more tax that you should. We can ensure that all information is accurate and help to shoulder the burden so you don’t need to worry about submitting your tax return on time.
Pension providers subtract the amount of tax owed before paying you, and any tax owed on the state pension is also subtracted before you are paid. If you receive payments from multiple providers, HMRC will require one provider to subtract the tax from the state pension. At the year end, you will receive a P60 from the provider of your pension which will show the amount of tax you have paid.