State pension UK: Is your pension taxable? This is how you can claim back money

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State pension is an important payment for many people when they reach retirement age and there is a criteria they must fit in order to claim it.  This amount varies depending on whether the pensioner qualifies for the basic state pension or the new state pension.  No matter which pension they get, pensioners can be taxed on this amount.  However, not everyone has to pay this tax and it can be claimed back by pensioners who have overpaid.

What is state pension?

Those who qualify for the state pension will either receive the basic state pension or new state pension.

The new state pension applies to a man born on or after April 6 1951 or a woman born on or after April 6 1953.

When they reach state pension age, these pensioners are entitled to £168.60 per week.

The basic state pension applies to anyone born before these dates, and they will receive £129.20 per week.

No matter which pension applies, pensioners can be taxed on this amount.

When is state pension taxable?

State pension can be taxed if the pensioners total annual income adds up to more than their Personal Allowance, which currently stands at £12,500 per year.

The annual income takes into account any money they may receive from their state pension, additional state pension, private pension and earnings from employment.

However, for those whose only income is their pension, they will not make more than £8,767.20 per year.

This means these pensioners should not have to pay tax, and if they have done so they can reclaim it.

If people have been taxed despite earning less than their Personal Allowance, there is information on how to claim this money back in available on the gov.uk website.

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