Tax and allowances in retirement

FinSol Tax Advisors are an innovative group of tax Accountants Stanmore. We are a professional firm who provide accountancy services to both business and individuals in Stanmore.

Tax and allowances in retirement: Find out about paying tax if you have retired or receive a pension, and learn about the range of allowances and help that is available.

Tax and allowances in retirement
Income tax rates and personal allowances: As you get older there are age-related allowances that can reduce how much tax you pay. Some allowances are income amounts which aren’t taxed. Other allowances reduce your tax bill.

Tax when you get a pension:
When you get money from a pension you pay tax on any income above your tax-free Personal Allowance. How much Income Tax you pay depends on the tax rate that applies to you.

Tax relief on pension contributions:
The government encourages you to save for your retirement by giving you tax relief on pension contributions. Tax relief reduces your tax bill or increases your pension fund.

Tax on savings interest:
Most people can earn some income from their savings without paying tax. This is called a Personal Savings Allowance which applies to each tax year, from 6 April to 5 April the following year.

Reclaiming overpaid tax on savings
If you think you’ve paid tax on your savings interest when you didn’t need to, or paid more than you should have, you can claim it back. You can download form R40 to do this, or contact your local tax office or the HMRC Office.

Tax on dividends
You may get a dividend payment if you own shares in a company.

National Insurance contributions
Find out about your National Insurance contributions If you’re employed, or self-employed when you reach State Pension age.

Blind Person’s Allowance
If you’re registered as blind you can claim Blind Person’s Allowance. This is an amount of income you can get without paying tax.

Married Couple’s Allowance (includes civil partnerships)
Find out if you can claim Married Couple’s Allowance if you are married or in a civil partnership.

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