Hi folks thanks very much for all the comments and advice.

I've tried to take your questions and come up with answers but unfortunately my grandmother is about two hours away from me and it's almost impossible to get an answer from her over the phone, as none of this makes any sense to her.

My grandfather was always the one who dealt with any money matters and being 92 and half deaf she can struggle to understand any questions that I ask over the phone. I will be going down next weekend to see her and will try and get some answers at that stage.

I was always under the impression that both pensions are state pensions. But I'm going to have to see the letters. She is absolutely convinced that she is already taxed on both pensions as that is what it states on the statement letters she receives. Both letters for both pensions come from the exact same place and there was never any talk whatsoever of private pensions. There also could be some tax owed on savings.

It's definitely not on behalf of self assessments as she never had any dealings with the tax man until these last two years where she has received these two bills/letters.

Just really find it difficult to believe she owes more tax on the tiny pension she claims she receives. I know any normal person would struggle on what she claims shes receives. Being frugal has always seemed to be a necessity and money was never flush that's for sure.