State Pensions -tax return declarations
Most pensioners will be aware that their State Pension is taxed as earned income.
If you delay taking your pension you may become entitled to take the deferred benefit as an increase in your weekly/monthly pension, or as a lump sum.
Both of these options are taxable and need to be entered on your tax return from the fiscal year that you first receive the pension and if taken, the lump sum.
If you are a tax client we obviously are aware of your age and therefore eligibility for State Pension benefits. However we will not know if you have decided to defer taking your pension and if so, that you may be receiving a lump sum at some time in the future.
It would be helpful if you could keep us informed so that we can properly advise on any resulting tax liabilities that may arise - and when they may fall due for settlement.