Tax paid on my Pension

[ronecc]

I receive the standard Pension of £12,570. I also receive income from two small private pensions, amounting to £2000 per annum. I am being Taxed on my private pension of around £200 per annum. As I understand it, I can earn £5000 in savings interest before paying tax, so how come I pay tax on the £2000 private pension, which is in effect my savings? Is it possible to have my Pension paid into a savings account, rather than my current account?

[PallasAthena]

Pension is taxed as Income not interest. You can have it paid into whatever account you like but the type of account it is paid into makes no difference to how it is taxed.

[ronecc]

Pension is taxed as Income not interest. You can have it paid into whatever account you like but the type of account it is paid into makes no difference to how it is taxed.

Thanks. What a silly unfair system system. So my pension is taxed and the first £5000 of interest is not. Unless my income exceeds the Personal allowance, then the income and tax overlap. But they do not overlap when it is £5000 of pension over the personal allowance.

[wales01man]

Thats the tax system for everyone

[ronecc]

Thats the tax system for everyone

Stupid aint it? A bit like today. Openreach engineers working in our street. They vanish and we have no landline. Contact Openreach after trying to find how to do it for 30 minutes. Only to be told, 'Contact your service provider to switch you on, not our problem' Openreach cause the problem but I have to to sort it out. What a stupid country. Rant over.

[wales01man]

Stupid aint it? A bit like today. Openreach engineers working in our street. They vanish and we have no landline. Contact Openreach after trying to find how to do it for 30 minutes. Only to be told, 'Contact your service provider to switch you on, not our problem' Openreach cause the problem but I have to to sort it out. What a stupid country. Rant over.

I totally agree with you i have a saying that as intelligent people run this country im glad im thick