Esc a19

jem16

antonic wrote: »

Tax Allowance (Under 65) £7475.00

Taxable Income £42628.70 Tax £9258.80

Tax due £35000 x 20% £7000.00
Tax due £7268.70 x 40% £ 2907.48

You're using tax year 2011/12. The OP is asking about 2010/11.

antonic

jem16 wrote: »

You're using tax year 2011/12. The OP is asking about 2010/11.

Thanks Jem !

jem16

antonic wrote: »

Thanks Jem !

No problem.

Just to be pedantic with your revised figures - £37,400 should be at 20% and not £37,401 which is £1 into 40% tax.

antonic

jem16 wrote: »

No problem.

Just to be pedantic with your revised figures - £37,400 should be at 20% and not £37,401 which is £1 into 40% tax.

Dont worry, I wont fall out with you over 40p !

jem16

antonic wrote: »

Dont worry, I wont fall out with you over 40p !

So glad to hear that!

But it's only 20p.

VFM123

Hi Jem16 and Antonic

Don’t know about you, but the way my tax things are going, itseems like every 20p is going to be important to me!!
I took early retirement from my then main employment on 31March 2011. My P45 at the time of myretirement shows a tax code of 313L. This is supported by a P2 dated 13 March 2011 which advises that my taxcode for 2011/12 is 313L

Based on my P60s (works pension and Forces Pension), myincome for 2011/12 was as follows:
Works Pension – £3963.60, with tax paid of £462, tax code470L M1 (but see note 1 below)

Forces Pension - £14189.09, tax paid £1341.80, tax code 747L(but see note 2 below)
No State Pension income (it didn’t start until 26 May 2012)

Therefore a total income for 2011/12 of £18152.69 with taxpaid of £1803.80
Notes:

1. WorksPension – on 13 March 2011, a P2 advised that my tax code for 2011/12 was 313L.

2. ForcesPension – on 27 April 2011, a P2 advised that my tax code for 2011/12 is 747Lwhich replaces 313L
_________________

For 2012/13, my income will be:
Works Pension – £4169.70 with a tax code of BR

Forces Pension – £14947.29 with a tax code of 410P
State Pension - £5535.90 – no tax deducted. Note: this represents 45 weeks as the pensiondidn’t start until 26 May 2012

Therefore a total income of £24652.89
___________________

For 2013/14 – no idea other than that I think I’ll be payingan awful lot of tax!!
Again thanks for your ongoing help. People like me must drive you up the wall!!

jem16

VFM123 wrote: »

Hi Jem16 and Antonic

Don’t know about you, but the way my tax things are going, itseems like every 20p is going to be important to me!!
I took early retirement from my then main employment on 31March 2011. My P45 at the time of myretirement shows a tax code of 313L. This is supported by a P2 dated 13 March 2011 which advises that my taxcode for 2011/12 is 313L

Based on my P60s (works pension and Forces Pension), myincome for 2011/12 was as follows:
Works Pension – £3963.60, with tax paid of £462, tax code470L M1 (but see note 1 below)

Forces Pension - £14189.09, tax paid £1341.80, tax code 747L(but see note 2 below)
No State Pension income (it didn’t start until 26 May 2012)

Therefore a total income for 2011/12 of £18152.69 with taxpaid of £1803.80
Notes:

1. WorksPension – on 13 March 2011, a P2 advised that my tax code for 2011/12 was 313L.

2. ForcesPension – on 27 April 2011, a P2 advised that my tax code for 2011/12 is 747Lwhich replaces 313L
_________________

Oh dear - it looks like you will have an underpayment for 2011/12 which seems to have come about from the rather strange coding.

For an income of £18,152.69 you shoudl have paid tax of £2135.54. You have only paid tax of £1803.80 so an underpayment of £331.74

For 2012/13, my income will be:
Works Pension – £4169.70 with a tax code of BR

Forces Pension – £14947.29 with a tax code of 410P
State Pension - £5535.90 – no tax deducted. Note: this represents 45 weeks as the pensiondidn’t start until 26 May 2012

Therefore a total income of £24652.89
___________________

You might actually end up with an overpayment for this tax year considering they have allowed £6397 against your state pension which as you say will be slightly less at £5535.90. Probably work out at about £172.22. Make sure you follow that up at the end of the tax year.

For 2013/14 – no idea other than that I think I’ll be payingan awful lot of tax!!
Again thanks for your ongoing help. People like me must drive you up the wall!!

Not really. What drives me up the wall are those that don't take the time to find out and then blame others.

antonic

Pay £3963.60 Tax £462.00
Forces Pension £14189.09 Tax £1341.80

Total £1815.69 £1803.80

Less Tax Allce £7475.00

Total £10677.69

Tax due £10677.67 x 20% =£2135.54
Less Tax paid £1803.80

Tax due £331.74

I cant do 2012/13 as you havent supplied the tax deducted figures, but if you follow the example above you *should* be able to work it out for yourself.

If you find your income exceeding the figure of £25,400 for 2012/13 onwards you may find your automatically put into Self Assessment and have to complete a return annually.

(I do this every year for my father who is in the same situation as you, he gets an RAF pension, an Occupational pension and State pension).

This may be to your advantage as if the underpayment is less than £3000.00 they will recover it through your tax code
http://www.hmrc.gov.uk/incometax/code-underpayments.htm

Hope this helps !