P2 Clarification Required

mudman

I have recently received a P2 (New) with my tax code for 2013/2014.
Having allowed my state pension of £6812 against my occupational pensions I have a tax code of 262L. I understand I do not qualify for the age related allowance of £10500 and have been given the personal allowance of £9440. So far so good.
On the reverse it states that any income above £32100 will be taxed at 20%. Does that £32100 mean All Income or income after the £9400 has been allowed.
My income will be about £28,000 and I intend to take some "flexible" drawdown over the next few years (pot of about £20k). On the figures above how much Flexible Drawdown will I be able to take to stay within my 20 % allowance. Many Thanks.

Jack_Griffin

See table 'income rates and taxable bands'
http://www.hmrc.gov.uk/rates/it.htm

jem16

mudman wrote: »

Does that £32100 mean All Income or income after the £9400 has been allowed.

It means income after the personal allowance has been taken.

By the way it's £9440 and £32,010 so total of £41,450.

My income will be about £28,000 and I intend to take some "flexible" drawdown over the next few years (pot of about £20k). On the figures above how much Flexible Drawdown will I be able to take to stay within my 20 % allowance. Many Thanks.

Total of £41,450 minus £28,000 ( assuming this includes your state pension) = £13, 450.

Remember to include any savings or dividend income.

mudman

Many Thanks for quick responses. I am pleased to be informed that the £32010 allowance before paying higher tax band is after your personal allowance has been taken into account. This will make retirement a little better, taking a little flexible drawdown each year and able to earn a few bob as a casual worker all at 20% tax rate.
Once again, Many Thanks