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  • FIRST POST
    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 15th Sep 17, 11:43 AM
    • 474Posts
    • 45Thanks
    nxdmsandkaskdjaqd
    Pension - Tax Calculation
    • #1
    • 15th Sep 17, 11:43 AM
    Pension - Tax Calculation 15th Sep 17 at 11:43 AM
    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
Page 1
    • Dazed and confused
    • By Dazed and confused 15th Sep 17, 11:51 AM
    • 1,861 Posts
    • 829 Thanks
    Dazed and confused
    • #2
    • 15th Sep 17, 11:51 AM
    • #2
    • 15th Sep 17, 11:51 AM
    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
    • By nxdmsandkaskdjaqd 15th Sep 17, 11:56 AM
    • 474 Posts
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    nxdmsandkaskdjaqd
    • #3
    • 15th Sep 17, 11:56 AM
    • #3
    • 15th Sep 17, 11:56 AM
    All depends on what the mysterious "other taxable income" is, without knowing that it's impossible to say accurately.
    Originally posted by Dazed and confused
    The Other Taxable Income £5683 is Employment Support, which is taxable.

    Does that help in providing the answer?
    • Dazed and confused
    • By Dazed and confused 15th Sep 17, 11:59 AM
    • 1,861 Posts
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    Dazed and confused
    • #4
    • 15th Sep 17, 11:59 AM
    • #4
    • 15th Sep 17, 11:59 AM
    £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.
    Last edited by Dazed and confused; 15-09-2017 at 12:01 PM.
    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 15th Sep 17, 12:06 PM
    • 474 Posts
    • 45 Thanks
    nxdmsandkaskdjaqd
    • #5
    • 15th Sep 17, 12:06 PM
    • #5
    • 15th Sep 17, 12:06 PM
    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
    • By Dazed and confused 15th Sep 17, 12:10 PM
    • 1,861 Posts
    • 829 Thanks
    Dazed and confused
    • #6
    • 15th Sep 17, 12:10 PM
    • #6
    • 15th Sep 17, 12:10 PM
    £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
    • By nxdmsandkaskdjaqd 15th Sep 17, 12:15 PM
    • 474 Posts
    • 45 Thanks
    nxdmsandkaskdjaqd
    • #7
    • 15th Sep 17, 12:15 PM
    • #7
    • 15th Sep 17, 12:15 PM
    £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
    Originally posted by Dazed and confused
    Sorry if I gave insufficient info. Yes I am looking at UFPLS, so therefore I can withdraw £7756 and pay no tax. Right?
    • Silvertabby
    • By Silvertabby 15th Sep 17, 12:20 PM
    • 1,794 Posts
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    Silvertabby
    • #8
    • 15th Sep 17, 12:20 PM
    • #8
    • 15th Sep 17, 12:20 PM
    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?
    Last edited by Silvertabby; 15-09-2017 at 1:00 PM.
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