The Inland Revenue

See to answer the following questions for Pensioners

Do you need to top up your National Insurance contributions? If there are gaps in your National Insurance record find out if it's worth making up the shortfall

Tax and National Insurance after State Pension age. Tax and tax allowances in retirement or if carrying on working, stopping National Insurance contributions, tax if retiring abroad

Tax codes and tax forms explained for pensioners. Understanding your tax code or PAYE Coding Notice, what to do if you think there's a mistake

How your pension income is taxed - Tax on the State Pension, company pensions, personal pensions or retirement annuities and foreign pensions

Claiming back tax or National Insurance at State Pension age - Guidance for pensioners on how to claim back overpaid tax or National Insurance contributions

How to deal with HM Revenue & Customs for someone else - Contacting us on behalf of someone else who finds it difficult to manage their own affairs

The Inland Revenue have a special procedure for dealing with this problem. Usually they will be aware, through your local tax office, that you have left work at pension age. In most cases they will write to you enquiring about your sources of income after retirement.

They will also know the date on which your state pension starts and the amount of it from a form P86 which the DWP issues to the revenue for every pension award. If your pension seems likely to exceed your tax allowance, they will assess the tax due and ask you to pay it in four equal quarterly instalments starting thirty days after the assessment is made.

If those payments will cause you any hardship, they will be prepared to allow a more frequent payment of smaller amounts. You should write to them if you want to negotiate such a deal.

You should note that the Inland Revenue ignore sums of tax due of less than £80 in a year which they say are not worth collecting. So your total income in the tax year can exceed your tax allowance by £198 (£9 .88 a week) before any tax will normally be collected. However, if you fill in a tax return for any reason, they will collect all the tax due, even if it is less than £80.

Is this of interest - Income Allowance.

or Example Married Woman's Pension

Income Allowance.

/retirement/pensions/income/advice/income-allowance.php... see: Income Allowance.