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Tax on Pension
AB60
Posts: 3 Newbie
Can anyone tell me the difference
If earning £7476 p.a. tax is calculated at £226 p.a.
if earnings increase by £2008 p.a. tax is calculated at £666 p.a.
BUT
If earning £7476 (tax as above) and at 60 yrs of age
receive state pension of £2008 tax shoots up to £963 p.a.
(not even a full pension)
What is the difference between pension and earnings as income??? Why does the tax code drop and the tax amount increase so dramatically on such a small amount. How can ANYONE say that pension is unearned income when I, personally, have worked (and paid into the system) for 45 years!!??**
No wonder so many people fast exit this country:cool:
If earning £7476 p.a. tax is calculated at £226 p.a.
if earnings increase by £2008 p.a. tax is calculated at £666 p.a.
BUT
If earning £7476 (tax as above) and at 60 yrs of age
receive state pension of £2008 tax shoots up to £963 p.a.
(not even a full pension)
What is the difference between pension and earnings as income??? Why does the tax code drop and the tax amount increase so dramatically on such a small amount. How can ANYONE say that pension is unearned income when I, personally, have worked (and paid into the system) for 45 years!!??**
No wonder so many people fast exit this country:cool:
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