Hi, how much tax at BR has been paid on 926.95?
I have been getting a pension taxed at BR of 1 month at 76.76 then 11 months at 77.29. What is the pension before tax?
Thanks, Ron.
reverse tax paid
Aug 29, 2009
2 Replies
If by "taxed at BR" you mean that your personal allowance has not been applied to this income, then given that the BR is 20%, then your net pension must be 80% of your gross pension. So, to get your gross pension, you need to divide £926.95 by 0.8, which gives £1158.69. But because only whole pounds enter the tax calculation, you need to apply a small adjustment.
I make it £1158.55; the 55p are ignored and the tax is 20% of £1158, which is £231.60.
Thanks for that RR, Ron
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