The easiest solution is to keep the tax free allowance up with the basic pension.
I’m unsure what my parents do for tax. They both have incomes that put them well into the clutches of income tax.
Do they they pay a lump sum every April? I’ve never heard OAPs moaning about it, or being caught short for the tax man.
Being an OAPs who pays tax, similar to your parents, myself and Mrs Boldonlad are treated slightly differently:
Mrs B was only ever an employee in her working life, HMRC deduct tax via PAYE from her “other” Pension.
I was formerly self employed, and submitted a self assessment form. This has continued into the (so far) 17 years of retirement. HMRC deduct tax from my “other” pensions via PAYE and I pay or receive any necessary adjustment annually. It is usually a trivial amount.
I am sure that if I requested it of HMRC I could cease the form filling, but, Given HMRC competence(?) I prefer the self assessment route, but, I can understand that a significant number of my fellow OAPs who are “paperwork averse” may find it onerous.
The big get out for HMRC is that the legal liability for paying the correct tax lies with the taxpayer, not HMRC.
Is OAP still an acceptable term these days, incidentally?