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How much tax
swine
Posts: 18 Forumite
Hello.
I retire next month. I have a health service pension and old age pension a total of £14,194.34 I am male and 65. Confused about the tax situation.
Regards.
I retire next month. I have a health service pension and old age pension a total of £14,194.34 I am male and 65. Confused about the tax situation.
Regards.
0
Comments
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Are you married? What other income do you have, eg investments?£705,000 raised by client groups in the past 18 mths :beer:0
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Hi.
Yes married. Only other investments are premium bonds and isas.
Regards.0 -
You have a tax free allowance of £9490 this tax year. I cannot calculate your tax liability for the year without knowing the amount of your pay from 6/4/09 to the date of your retirement.£705,000 raised by client groups in the past 18 mths :beer:0
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Hi.
My earnings from April 6 to end of October when I retire is £3,983.00 gross hope this is of help.
Regards.0 -
OK, so your total income this year will be £3983 + 14,194 = £18,177. Deduct your tax free allowance, 9490, this leaves £8687 to be taxed at 20% = £1737.40 - about £290 pm.
Does this help?£705,000 raised by client groups in the past 18 mths :beer:0 -
Surely you have to pro rata the £14k down? Assuming £14k is annual, this year's pension will only be 5/12ths of that.0
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I think there is some misunderstanding going on. My total pension will be £14,194 less allowance of £9,490 = £4,704 to be taxed. Is this all taxed at 20% ??.
Regards.0 -
Yes, you are a 20% taxpayer, but for this year, you have to take your pay into account.£705,000 raised by client groups in the past 18 mths :beer:0
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