Some social security benefits are taxable and some are
not. It is important to understand which benefits count
as income for tax purposes.
Even if a benefit is taxable, it does not mean necessarily that you
have to pay tax on it. This is because everyone is entitled to
a tax-free allowance. You have to add the benefit to your
other income. If your whole income is more than your tax-free
allowance, tax is payable on the amount above the
allowance.
For example, State Retirement Pension is
a taxable benefit. If you are still working, your State
Retirement Pension and the income from your job will be added
together. The tax you have to pay on the total amount will
usually be worked out by the tax office and deducted from your pay
by your employer before you get it. However, if you have no
other income except your State Retirement Pension, this could be
less than your tax-free allowance so you might not have to pay tax
at all.
If you start getting taxable benefits or stop getting taxable
benefits, you must tell your tax office. The sooner you do
this, the sooner they can sort out how much tax you have to pay, so
you always pay what is due.
For more information about tax, including what are the tax-free
allowances, see the government information website,
Directgov (link
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