Taxing my pension?

Discussion in 'Finance & Pensions' started by frogman007, Nov 6, 2012.

Welcome to the Navy Net aka Rum Ration

The UK's largest and busiest UNofficial RN website.

The heart of the site is the forum area, including:

  1. Pusser seems not to be taxing my pension. Do they start taxing it once they have paid me £8105, the current threshold?

    My first year if getting it? Ill call xanity tomorrow but wandering if anyone can throw me a quick answer??
  2. Do you have a job, if so have you put your full tax allowance onto your PAYE for the job or the pension.

  3. Self employed. FPS happy with. WEA??
  4. Yep. Obvious once said. Ta
  5. That's useful info! I never knew that, cheers.
    • Like Like x 1
  6. Froggie .. as SJRM says ... pension is lumped together for tax purposed however will probably be taxed at source at Basic Rate then added to your salary and the whole lot taxed again at the appropriate rate. Suggest if you are Self Employed may be worth talking to a good accountant ... worth their weight in gold and could save you a fortune!
  7. Got one. Just away at minute in a hotel and sat on tinterner. Will make some calls tomorrow

  8. You were useless so don't worry!! I'll get back to you when I find out. Bonus today, I forgot all about the threshold, so made £8105 in a heartbeat.
  9. Your pension is counted as taxable income but not liable for National Insurance Contributions. If it is under £8105 (which is the basic personal allowance), and you have no other income, you will not have tax deducted.

    If you are not working, your tax allowance stays on your pension. If your are working, you must decide where to have the allowance - against pay or against pension. Those who have letting income or stocks and shares are usually advised to put it against pay but for the rest of us, it makes little difference.

    As other posters have confirmed the pension lump sum is tax free, as is redundancy lump sum (only the Armed Forces get the whole of this lump sum tax free: others are limited to the first £30K being tax free), the Resettlement Grant and Commutation.
    • Like Like x 1
  10. I'm Self Employed and HMRC allow my tax free allowance on my pension then everything thereafter at 20%. Do my own tax return online and last found out I had overpaid by £1800 - paid for a nice holiday, top tip claim for everything and keep receipts just in case the taxman doesn't believe you!!!
  11. From my accountant

    Hello Froggers

    Each year when your Self Assessment Income Tax Return is completed it has to include details of the pension income and of any tax deducted and the pension does indeed form part of your taxable income and any tax deducted is taken off your total tax liability for the year.

    Kind regards.

    So now I need to know when Pusser it taking the tax, they don't seem to be at the moment??

  12. Should get a chit from Xafinity, got mine 4th May. stating future payments and tax deducted (monthly)+ a P60.

  13. Yep pretty sure I will need mine sooner as I have to do my self assessment or my accountant does at at least.
  14. Drop Xafinity a line or call 'em and ask the question. Mines taxed by Xafinity at source and they tell those nice men at HMCR how much I get who add it all "Pre tax" to my pay and tax the lot again ... I did take it up with HMCR once and got told that if I didn't pay the 20% on my pensh at source then I would get stung a lot higher as its all taken into consideration ... I still think they are robbin [email protected]!

    You should have got a letter from Xafinity when you hit the magic numbers and it went up telling you new rate / tax to be paid etc.
  15. same rules for everybody regarding Tax /Pensions my bold ....Taxing Pensions In Payment - The Pensions Advisory Service (TPAS)
    Last edited: Nov 9, 2012
  16. Right got this squared away now (I think).

    I posted the answer from accountant earlier. Just spoke to Xafinity, they are taxing me around £20 a month. This figure will remain until told deifferently by the HMRC. Over the year this will roughly euqute to £240. Based on my rough £10,000 pension, my tax ( I pay NI by DD) will be, after the allowance of £8105 about £400. So I already owe £160 to the taxman.

    All my self employed earnings will then come under scrutiny and will have to pay my tax on at the current rate, that plus 9% NI contributions based on my NET earnings, less the amount of NI I have paid each month via direct debit.

    Piece of piss really!
  17. Ten grand a year??? fcuk me !!!
  18. Thanks for the offer Stan, but No thanks!

Share This Page