Is all my pesion taxed

pothole50

I am soon to retire but I am unsure on the amount of tax I will have to pay, does it work the same way as when I was employed I have a tax code and allowance before tax or will all my pension be taxed.

thanks

pothole

ukmike

Just the same as when you're employed.

McKneff

hello pothole, dont know which sex you are but if you are male and 65 your tax allowance goes up from £6Kplus to £9kplus. (not sure of the exact figures)
If you are female, your tax allowance remains the same ie £6kplus till you get to the magic age of 65 then its the same as the male one

dzug1

If it's your state pension - it's taxable, but you won't get a tax code. Your allowances may as stated above mean no tax though. If you do have to pay tax you'll have to fill in a tax return and make arrangements to pay it.

If it's a private/company etc pension then it's taxable, but you should get a tax code. The tax code will at least try to take account of your state pension

yelf

pothole50 wrote: »

I am soon to retire but I am unsure on the amount of tax I will have to pay, does it work the same way as when I was employed I have a tax code and allowance before tax or will all my pension be taxed.

thanks

pothole

If its state pension then it is taxed via a reduction in your allownace (so all other income will have a lower amount allowed before being taxed)

If its not state pension, then it is taxed as earned income.