Pension - Tax Calculation

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nxdmsandkaskdjaqd
nxdmsandkaskdjaqd Posts: 782 Forumite
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in Pensions, annuities & retirement planning
Hi

Could I please ask for some assitance in checking the sum I can take from my pension whilst staying below the tax threshold.

Personal Allowance £11500

Other Taxable Income £5683

Therefore £5817 Taxable income and £xxxx Tax free component

Can withdraw from pension £5817 + xxxx Tax Free

Just unable to get my head around the numbers this morning.

Thank you

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  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    You appear to be massively over complicating things.

    If the "tax free" element is the 25% TFLS then ignore it as it isn't relevant for what you are considering.

    And based on your op you could take upto £11,500 without incurring a tax liability on it.

    All depends on what the mysterious "other taxable income" is, without knowing that it's impossible to say accurately.

    But somewhere between £5817 and £11500 is likely to be the answer.
  • nxdmsandkaskdjaqd
    nxdmsandkaskdjaqd Posts: 782 Forumite
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    Dazed_and_confused wrote: »
    All depends on what the mysterious "other taxable income" is, without knowing that it's impossible to say accurately.

    The Other Taxable Income £5683 is Employment Support, which is taxable.

    Does that help in providing the answer?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    edited 15 September 2017 at 12:01PM
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    £5817 is correct then. Unless you are married which could make a difference if your spouse has low(ish) taxable income or one of you is in your 80's.

    If the other income had been wholly or partly interest (or dividends) then you could have taken more and not had tax to pay.
  • nxdmsandkaskdjaqd
    nxdmsandkaskdjaqd Posts: 782 Forumite
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    Of the £5817, 25% is tax free. So I can take from the pension £7271 (approx) and still be within my personal allowance. Is that not corect? But what is that accurate number?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    £5817 is the amount of taxable income you can take without ending up having tax to pay.

    TFLS is totally different and isn't necessarily linked to the taxable amount. There are lots of options for taking the TFLS but one would be to take £7756 of which 25% would be TFLS and the remaining 75% taxable income
  • nxdmsandkaskdjaqd
    nxdmsandkaskdjaqd Posts: 782 Forumite
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    Dazed_and_confused wrote: »
    £5817 is the amount of taxable income you can take without ending up having tax to pay.

    TFLS is totally different and isn't necessarily linked to the taxable amount. There are lots of options for taking the TFLS but one would be to take £7756 of which 25% would be TFLS and the remaining 75% taxable income

    Sorry if I gave insufficient info. Yes I am looking at UFPLS, so therefore I can withdraw £7756 and pay no tax. Right?
  • Silvertabby
    Silvertabby Posts: 9,024 Forumite
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    edited 15 September 2017 at 1:00PM
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    Unlike means-tested benefits, there is no income and savings test for contributory ESA. However, your ESA is reduced by half the amount of any pension or permanent health insurance payment received in excess of £85.
    Does this apply to you?
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