How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3616
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Any rise I have had in my old age pension during the last 2/3

Customer Question

Any rise I have had in my old age pension during the last 2/3 years, seems to cancelled out by a change in my Tax Code. Therfore I have stayed on the same pension over this period. Any reason why this should be?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Your State Pension (SP) is, as you are doubtless aware, taxable, although it is paid gross. Accordingly, to collect the tax due, HMRC reduce your code number by the amount of the SP to be paid. You should always check your tax code when notified to ensure that this adjustment is correct and corresponds with the figures notified by The Pensions Service.
The effect of this often results in what appears to be a lemon, but if you do calculate it out I am sure you mill find a modest annual increase overall is actually achieved and you are tax neutral at the year's end.
I do hope I have put your mind at rest on this matter, but like all things with HMRC it is a case of check, check and check again.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3616
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thank you for that. Does this mean then that if the Tax allowance went up to £12500 before tax, put forward by Davis Cameron today, my state pension would be free of Tax?

Expert:  bigduckontax replied 2 years ago.

Probably, that is his intention so I believe from my reading of tonight's TV news. However, if you have other pensions to which your tax code is applied then your income subject to tax would be State Pension + Other Income - Personal Allowance [promised at 12.5K] which might still leave you in a taxable position for any income in excess of the Personal Allowance. My Mother always cautioned me that promises were like pie crusts!

Please be so kind as to rate me before you leave the Just Answer site.

Customer: replied 2 years ago.

Thank you for you excellent service. I think I have probably understood it now.

Many thanks.

Expert:  bigduckontax replied 2 years ago.

I know, it is difficult to get one's head around as it seems so totally addled, but it does actually work!

Thank you for your support.

Customer: replied 2 years ago.

I have rated the service, twice!! excellent!!, but I am giving Just Answer a Bad Service because so far I have had ten (10) emails throughout the night asking me to rate the service. Now if this relentlessly carries on, I shall have to ask for my £11 back or simply block Just Answer from my emails. I hope you can pass this message on to whoever keeps sending me reminders and remind them that I agreed to pay the required fee of £11 and that is all, and that I require no more inexorable, insistent, unremitting, unrelenting reminders. Now, NO MORE EMAIL REMINDERS or I shall take this further, also you will be blocked.

Expert:  bigduckontax replied 2 years ago.
Actually it is nothing to do with me. I have received your payment and thanked you. To attempt to remedy this defect you must speak to Just Answer direct.
There is, in fact, a well known fault in the JA system which just keeps generating these endless requests which their technicians in San Francisco say they are trying to resolve. Please don't shoot the messenger. This reply may stop the nuisance messages, but don't bank on it!
Customer: replied 2 years ago.

Thanks Keith,

Believe me when I say this has nothing to do with your replies which were well received, thank you.

I was blaming a system which insists on pinging me throughout the night asking me to reply to something I have already answered.

I hope they resolve the glitch soon, but I don't hold out much hope so far. I shall try to contact them, but if it persists I have no alternative but to block their replies. Thank you, ***** ***** is no need to reply.

Expert:  bigduckontax replied 2 years ago.
Regrettably I have to respond to clear my question list!
Expert:  bigduckontax replied 2 years ago.
Your question has come up again, so sorry.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.co.uk/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.co.uk/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.co.uk/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.co.uk/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions