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Pensioner Income Over Tax Free Allowance

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DDIL | 12:07 Mon 14th Oct 2024 | Business & Finance
31 Answers

My neighbour asked for my help at the weekend with some paperwork.

We were working out her income and I discovered it was over the tax free allowance by £600.

Looking back on previous years as far as I could go - her income has always been over the allowance, but she has never completed a tax return.

Her attitude is she paid enough in during the 15 years she was a business owner so why should she give them more now!

What are the chances of her getting caught?

Thank you

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Very much depends on where the extra income comes from 
12:12 Mon 14th Oct 2024

If your neighbour is prone to sharing financial information with someone who goes straight online about it then the chances are considerable.

Very much depends on where the extra income comes from 

I get the impression you disagree with her attitude. HMRC should pick it up if it comes from a private pension (although they may have  atoleranace threshold where they think it's not worth bothering), so I guess she has another source? It depends what the source is- are you able to tell us?

Perhaps you should report her in case you are treated as an accomplice! 

If she goes through the HMRC questionaire it will tell her if she should be completing a tax return. If the computer says "NO" then it is up to Revenue to take her income into account & issue a tax assessment/demand if necessary.

https://www.gov.uk/check-if-you-need-tax-return

my 2 pence

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stocks and shares and a foreign pension.

I don't agree with her, sorry may sound harsh but she paid in for 15 years and has claimed for more than twice that.

She is a lovely lady but thinks the world owes her.

//Perhaps you should report her in case you are treated as an accomplice! //

Quite possibly the most sound advice, particularly where the MWSD are concerned

Question Author

MWSD?

She will get caught

foreign pension - she should make a tax return, not to do so is tax evasion & if/when discovered could lead to a tax bill for back years plus interest & penalties.

Yes, she would answer YES to

Did you get a pension?

Yes, I get some or all of my pension income from a pension outside of the UK

Hopefully you'll tell her this.

Question Author

I will pop over an tell her this evening, however I fear after all this time of receiving the extra pension she will not care a jot!

Ah, I think I might know now which MWSD is being referred to by youngmafbog

 I'm curious as to what help she wanted if it wasn't advice on tax liability? 

 

is it square dancing?🤣

she's probably sorry she asked you!

Question Author

She wanted me to look on the internet if she could get more income from the government.

There is also no need to be rude.

I still don't know what MWSD means.

Have you included any other benefits she might get such as Attendance Allowance?

Question Author

They are excluded from the income amount.

I came here to ask advice and I am not sharing financial information other than where her income is coming from - I am not giving anything away that I have not asked her permission to share.

This is a question site and if you ask a question that is for once a valid question you are met with derision and mirth!

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