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Tax on Forces Pension & Current Salary
Ali660
Posts: 190
Forumite
Hi, DH completed 22 yrs service earlier this year and has been employed since then through an agency so monthy take home pay varies. For tax purposes his pension is counted as his main income and his agency pay is taxed at 20%.
Can anyone advise whether it is better to have your pension taxed at 20% and count the new job as main income? I've looked at the figures and think there is a modest difference of approx £300 per annum but when DH called the Tax Office back in April to ask their advice they said there would be no difference?
Any advice gratefully received.:beer:
Can anyone advise whether it is better to have your pension taxed at 20% and count the new job as main income? I've looked at the figures and think there is a modest difference of approx £300 per annum but when DH called the Tax Office back in April to ask their advice they said there would be no difference?
Any advice gratefully received.:beer:
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Comments
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I cant see why there should be a difference at all,
Where are you getting the £300 difference from.
No matter which way you do it, you are still taxed 20% on any earnings over the tax allowance.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
If the AFP is greater than the tax allowance and other income is variable then it is far easier to have the tax allowance set against the pension. There will be no difference in the final outcome but much easier to cope with. (Been there, done it, got the t shirt
) Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
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