How much tax should i be paying

vicsam100

Hi Everyone ,

Having just retired , i would be grateful of some advice please.
My total income of my pension (private and state pension) is a grand total of £13.900 per annum . Can someone please tell me how much income tax i should be paying and how its worked out. I am not up on these things and would like some expert advice .
Many thanks for any help everyone

greenglide

Assuming a standard tax allowance of £10,000 then £3,900 would be taxable at 20%. This would give a tax of £780.

kidmugsy

Note that next tax year there will be a 0% tax band on savings income (i.e. interest) of up to £5k above the personal allowance (which will then be £10500). So you'll have band of approx £15,500 - £13,900 i.e. roughly £1500. If you're going to have such interest coming in, you'll want to complete a form R85 for each account so that you get the interest tax-free. That'll save you from the hassle of paying tax and then having to reclaim it.

vicsam100

Hi Greenglide,
I spent a while on google trying to figure it out and going by your figures it looks about right. Many thanks for taking the time to help me .

vicsam100

kidmugsy wrote: »

Note that next tax year there will be a 0% tax band on savings income (i.e. interest) of up to £5k above the personal allowance (which will then be £10500). So you'll have band of approx £15,500 - £13,900 i.e. roughly £1500. If you're going to have such interest coming in, you'll want to complete a form R85 for each account so that you get the interest tax-free. That'll save you from the hassle of paying tax and then having to reclaim it.

That sounds rather complicated but will keep it in mind . After paying tax for 48years think i deserve something back. What really annoys me is some people i know get nearly double what i get from state pension and they have hardly put into the system .. all down to pension credit i suppose

JohnB47

vicsam100 wrote: »

That sounds rather complicated but will keep it in mind . After paying tax for 48years think i deserve something back. What really annoys me is some people i know get nearly double what i get from state pension and they have hardly put into the system .. all down to pension credit i suppose

Or maybe you've been contracted out for some of your employment history, meaning you get less state pension but an equivalently higher personal pension. Some of your 'people' who are getting more state pension than you may be getting a much smaller personal pension, or none at all.

greenglide

and from April 2015 part of a spouses unused allowance is supposed to be transferable.

But, of course, the government may change their mind, the election could get in the way etc.

mark5

I find the website listentotaxman, good for this sort of thing.