Net pay

poshman

Hi helpers I am over 65 in full time employment net monthly pay is £2,900 plus I draw company pension £1600 minus £600 due o 40 pc tax I am deferring state pension at the moment

So £3,900 net per month in total but I am thinking of retiring soon
My question is would I pay tax on company pension of £1,600 plus I would draw state pension of £460 a month
I e £2000 per month. Thanks P M

dunstonh

Yes you would pay tax as your personal allowance remains the same in retirement as it does whilst working.

DUTR

Yes, you pay tax on income over the personal allowance think it's around £11k at present, also remember your pension contributions were not taxed.

poshman

Thanks for prompt replies


Pretty simple then looked on calculator works out I would get £1,560 Approx per month

No time to retire im afraid !

mgdavid

poshman wrote: »

Thanks for prompt replies


Pretty simple then looked on calculator works out I would get £1,560 Approx per month

No time to retire im afraid !

if you retire next April 6th when you have a full year's Personal allowance available I make it you would have £1831 after tax.

What's your NUMBER (see the Number thread)?