Joint Tax liability for my Personal Pension.

Wild_Willy

I get a pension, but was recently head hunted (dug out of retirement) to do my old job. Trouble is it will put me over the 40% tax bracket. Can my missus claim that half of my pension is her joint earnings? This would mean half would only be taxed at 20%. If she left me she'd be entitled to half anyway....

Gertie_Walker

No, if the pension is payable to you, then its your income for tax purposes.

le_loup

You can, however gift any savings to her. If she is a non-tax payer, she can have the interest paid gross.

zygurat789

Perhaps your new employer could be persuaded to employ your wife as your "assistant" and reduce your salary by a (coincidentally) similar amount to her pay.

le_loup

That smacks of evasion. Take care.

zygurat789

It's nothing that our MPs haven't done.

le_loup

So that makes it OK then?
What would you or the tax inspector make of say, Stuart Rose paying his wife a salary from M&S with no evidence of work being undertaken.

kickwhamstunner

Given that M&S are a large corporation, they'd likely OK it and then go back to hounding taxpayers who don't have the money to employ accountants and armies of lawyers.

zygurat789

le_loup wrote: »

So that makes it OK then?
What would you or the tax inspector make of say, Stuart Rose paying his wife a salary from M&S with no evidence of work being undertaken.

There are plenty of civil service mandarins on "gardening leave" with absolutly no evidence of work being undertaken.