Tax

bermary

Hi all,hope I'm on the right forum,I just wondered if someone could do me a quick calculation on the tax that I pay monthly,my monthly income is £1014-61 which is my state pension plus my company pension I am retired ,75 years old and no other income,could anyone tell me approx,how much income tax I should be paying out of this per month, sorry for the trouble but I'm a proper numpty when it comes to tax matters.

CLAPTON

well

state pension is usually paid 4 weekly and not monthly

but assuming that 1014 is you gross monthly income then that means your annual income is 12175

you have an tax allowance of 10,090 as you are 75 so that means you get taxed on 12,175 - 10,090 = 2085 at 20% = 417 per annum or 34.7 per month

bermary

Thanks for your reply clapton,I'm being stopped approx £59 per month have you any idea why this should be.

CLAPTON

what is your tax code?

can you confirm each element of your income as the state pension is usually paid every 4 weeks and not monthly

bermary

Tax code is 312Y, my state pension is £134-01 per week paid every 4 week,my works pension is £560-24 per calendar month.

jem16

bermary wrote: »

Tax code is 312Y, my state pension is £134-01 per week paid every 4 week,my works pension is £560-24 per calendar month.

Your tax code is worked out by deducting your state pension from your personal allowamce because the state pension is paid gross but is taxable income.

So personal allowance of £10,090 minus state pension of £6968.52 (£134.01 x 52) which equals £3121.48. That's then basically divided by 10 to give your tax code, hence 312Y.

The 312Y tax code is then attached to your works pension meaning that you get the first £260.41 tax free. the next £299.83 is taxed at 20% which is £59.96.

So absolutely correct.

CLAPTON

yem16 is as usual correct

that's because your monthly income is in fact 1140.95 and not 1014
i.e. state pension 134.01 x 52 = 6968
and your works pension is 560.24 x 12 = 6722

so total annual pension is 13,691 i.e 1,140 per amonth on average

bermary

Thanks for your time clapton and jem just wanted to know I wasnt paying over the odds.