working full time , claiming pension

demonbane62

at 55, i am fortunate enough to have taken a lump sum, claimed pension and still working full time

i have an 1100L tax code on my salary ( approx £27000 pa )
and pay 40% tax on my pension (£13000 pa )

is this correct or do i need to speak to HMRC ?

TadleyBaggie

Based on those figures you would still be a basic rate tax payer and be paying 20% on the pension.

xylophone

Contact HMRC - at first sight, it would seem that the tax code on your pension needs adjustment.

https://www.gov.uk/tax-codes/if-you-think-youve-paid-too-much-tax

atush

And you could put some of your 27K into a new pension, so as to not pay as much tax on your old one. But if you took more than the LS, you can only put in 10K PA (unless your pension was a DB one).

badmemory

I would also put your personal allowance against your pension. This is because your pension is going to continue even if you stop working and will save having to explain why it needs to change then. If your pension is fixed for the tax year then they can arrange your work code so that the tax you pay is correct. (It won't be as it stands).

Dazed_and_confused

Atush

And you could put some of your 27K into a new pension, so as to not pay as much tax on your old one. But if you took more than the LS, you can only put in 10K PA (unless your pension was a DB one).

Hi, I'm interest in this but cannot work out how it will reduce the tax paid on the old (existing) pension - could you explain this a bit more?

atush

If say you are getting paid 30K PA, you pay BRtax. So if you got 10K in a pension, you'd lose some of it to tax. But if you put 10K into a pension, you would get the tax back (as a contribution tot he pension).

You cant put pension income into a pension (apart from 2880/3600) per se, but if you have other income you can out that in, instead.