tax allowance

fadetogrey

Hi hope someone here can help with a (probably)silly question.I receive a small company pension and from last month have been taxed at £35 per month.I received my tax allowance in april and like most its seven thousand some hundred pounds for the year 2011/2012.Now am I right in thinking thats what im allowed to have for the year 2011/2012 BEFORE I am liable to pay tax and if so why is the taxman taking tax off me already as I have only received £500 pension in april and the same each month?Thanks for any help.

nannytone_2

having a tax allowance of 747 means that you get that amount tax free over the course of the year.
you dont receive that amount and then start paying tax.
it works out roughly £130 a week. everything over that amount is taxed at the basic rate of 20%

how can youy get to the age where you are receiving a pension without knowing this?

CAN1976

If it worked that way I wouldn't be paying any tax in April or May, but would then get hammered the rest of the year

fadetogrey

nannytone wrote: »

having a tax allowance of 747 means that you get that amount tax free over the course of the year.
you dont receive that amount and then start paying tax.
it works out roughly £130 a week. everything over that amount is taxed at the basic rate of 20%

how can youy get to the age where you are receiving a pension without knowing this?

never really had thought of it just went to work paid taxes and wifey spent the rest.

kst101

I still don't see why you are paying tax on £500 a month as that is only £6000 in a year. Is your tax code definitely 747L? On that tax code you should get up to just over £600 before you pay tax.

[Deleted User]

Hi,

put your figures in here, see what it says.