tax on annuity pensions after employment

jem16

Froglet wrote: »

One pension is 3/4 of the total amount,the other 1/4.Combined they come to about two thirds of the tax free allowance per month .

So in reality he shouldn't be paying any tax?

If earning less than £675.42pm then no he shouldn't be paying any tax.

However as Clapton says without providing the actual figures, it's difficult to suggest what the tax codes should be split as so we can't be more helpful.

System

jem16 wrote: »

If earning less than £675.42pm then no he shouldn't be paying any tax.

However as Clapton says without providing the actual figures, it's difficult to suggest what the tax codes should be split as so we can't be more helpful.

Splitting the allowance should only really be an issue from April 2013. This year, earnings + main pension exceed annual personal allowance. P45 details to main pension provider and BR on second pension should be all that's needed.

Froglet

ceiberman wrote: »

Splitting the allowance should only really be an issue from April 2013. This year, earnings + main pension exceed annual personal allowance. P45 details to main pension provider and BR on second pension should be all that's needed.

Thanks, that is what i was working on,the fact that over the tax year he will have earned more than the personal allowance.It was just confusing me a bit that he will now be getting his pension for another 6 months at two thirds the monthly allowance.But i can see that it is what he earns overall that counts.

System

Froglet wrote: »

Thanks, that is what i was working on,the fact that over the tax year he will have earned more than the personal allowance.It was just confusing me a bit that he will now be getting his pension for another 6 months at two thirds the monthly allowance.But i can see that it is what he earns overall that counts.

If the P45 details go to the main pension provider any month (going forward) where he doesn't use his full personal allowance, he'll receive a small refund based on the tax paid on the earnings.

Froglet

Thanks to all who took the time to reply.

If the P45 details go to the main pension provider any month (going forward) where he doesn't use his full personal allowance, he'll receive a small refund based on the tax paid on the earnings.

Yes silly me i should have realised that.Believe it or not i used to have my own business(many moons ago!) and so i dealt with tax and NI then.

Age dulls the old grey matter somewhat but i shall sit down now and work out what he has earned,and paid so far.It's just that the pension isn't great by any means so i didn't want the tax man reducing it even more.He is hoping to get a part time job which will complicate things further! but somehow it seems different when you are earning,you are used to losing some then!