My 70 odd year old father has had to pay tax on his state pension for last year as his allowance was below the amount it paid out. He is not working, Has no other income and the basic state pension is his only income. I've spoken to the Inland Revenue and they say it is correct. Does this sound right as I cant believe you'd have to pay tax on a pension like this.
Your father can have an income of �9030 per year before paying tax - �173.65 per week.
He pays tax at the standard rate on every penny he gets above this (unless he gets some benefits which aren't counted, such as Disability Living Allowance)
If his ONLY income is the state pension then, if he is paying tax on it, he must have a very large SERPS element in it - enough to take the total above Ethel's �173.65 p wk.
Or, for any number of potential reasons, most likely back tax owing from previous years, his tax code is very low.
It may of course be a mistake but if the revenue have already been asked to check it and confirmed it's correct as the original questioner suggests then that seems unlikely.