Income On Top Of Basic Pension

In 2015/2015 the age allowance is £7,180 (£81.19 a week) for a single person aged sixty-five to seventy-nine. The basic retirement pension is £81.19 . So you can have £80 income a week on top of the basic retirement pension before you start paying tax.

The figures for a married man where he and his wife are under eighty and one of them is sixty-five or more is £60.96. For people over eighty, the figures are £88.90 (single) and £68.80 (married) on top of the basic retirement pension.

A single woman aged under sixty-five throughout the tax year who does not get the age allowance can only have about £8.99 a week on top of the basic pension before she starts paying tax.

If you have extra amounts on top of your basic pension, such as graduated pension, earnings related additional pension, or extra pension for postponing retirement, then obviously you can have less other income before you start paying tax.

But if you still have dependent children, the extra pension you get for them is tax free.

It is possible, especially for single women under sixty-five, that the tax allowances will not be enough to cover your state pension including the graduated, additional and extra pension you may have added on to the basic pension.

So you could end up paying tax on your state pension alone.

Read About - The Inland Revenue

or Income Allowance.

The Inland Revenue

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