Pensioner Income Over Tax Free Allowance

[DDIL]

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

[douglas9401]

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

[barry1010]

Very much depends on where the extra income comes from 

[newmodarmy]

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?

[newmodarmy]

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

[davebro3]

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

[DDIL]

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.

[youngmafbog]

//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

[DDIL]

MWSD?

[barry1010]

She will get caught

[davebro3]

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.

[douglas9401]

https://www.acronymfinder.com/MWSD.html

[newmodarmy]

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.

[DDIL]

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!

[newmodarmy]

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

[newmodarmy]

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

 

[davebro3]

is it square dancing?🤣

[davebro3]

she's probably sorry she asked you!

[DDIL]

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.

[barry1010]

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

[DDIL]

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!