This may be of Interest if your just about to complete 22 Years

Cat695

CHR15 wrote: »

Around £660 should be correct, don't forget for the first few months the Tax codes will be all over the shop.

If they have gone straight into employment, give them a nudge to ensure BOTH tax offices are aware of the income from the other. Tax offices DO NOT communicate. the Forces Pension Office will have no idea there is an employment Tax Office too (and vice versa), they will be getting the same Tax benefits from BOTH incomes.

If your mates don't inform the tax offices there is more income, they will be paying insufficient Tax. It happens to most people leaving.

Some of my friends have fallen foul. One had a Tax code of 16L in his second year because he hadn't been paying enough, another had to stump up over £2K......twice!!

Thats it you reminded me now....he spoke to the tax office who said that he will not have to pay tax for the rest of the year as he has paid enough already.....hence why it's so high

He has no intentions of getting a job this year at least.

Francesanne

Andy_L wrote: »

Hmm yes, less than the military get :rolleyes:

but most civil servants aren't risking their lives on a daily basis.

Andy_L

Francesanne wrote: »

but most civil servants aren't risking their lives on a daily basis.

Sorry, must of misunderstood you, I though your were saying that CSs got better pensions/ redundancy payouts than Mill.

jungli_jim

I am assuming that pension figures will increase by 6% over the next 2 pay rises if i leave May 2010, pension after 23.4 years will give me after paying Tax @ 20% and allowing for a personal allowance of £6435 a monthly pension of £800 a month.

Figures quoted above fail to take into account personal tax allowance currently £6035, and if he's not working then it'll offset against his only income giving a pension of £720 a month. From April 2009 increase in P/A of £440 gives a additional £29 a month pension payment.

9300+3%+3%+(£500) = £10400
£10400-£6435 = £3965 X .8 = £3172
£3172 + £6435 = £9607 / 12 = £800 a month

CHR15

That's precisely my point about ensuring BOTH Tax Offices know (assuming you go into employment)

If you fail to inform both offices, you will receive the same personal allowance for employment AND Pension incomes.

It's entirely normal to have the allowances associated with the employment income which leads to paying more tax on the Pension, hence the lower figure of around £660.