Hi I get 2 pensions per month, 1 of 84.62 and the other of 127.02 which are taxed at, I think 20%, as I also work and pay income tax on my wages of
What would be the amounts of 84.62 and 127.02 I would get if I was no longer liable for income tax on them?
My hours are going to be cut so my wages will be under the threshhold for paying tax i.e less than my tax code.
Thanks, Janice
Assuming that the figures quoted for the pension are net (after tax), the gross values would be 105.77 and 158.77 respectively. If these were both paid gross, you would get a total of 3174 from them in a complete year.
They will, however, only be paid gross if your *total* income - including what is left of your job - add up to less than the tax allowance. Assuming you get a standard tax allowance (was about 5400, but has been put up a bit to compensate for the loss of the 10% rate - can't remember the exact current figure) you will only be able to earn about 3000 p.a. (compared with 9000? at present) without still having to pay *some* tax on the pensions.
Allowance is 6035 or 9030 if over 65.
See:
Thanks - useful link!
Looks like my figure of about 3000 before having to pay tax on the pensions wasn't too far out - assuming the OP is under 65. [If she's over 65, she probably wouldn't have been using all of her allowance on her main income].
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