Silly Question on Pensions/Tax

1931modela

Hi All, just looking for some guidance to whether my assumptions and calculations are correct.
For info I am 67, and work part time, I am looking to retire fully at end of year.
I am in receipt of full state pension and a private DB pension and am enrolled in a LGPS scheme currently, 
My question is (hopefully not too silly) but do I just add all gross annual pensions together then take off tax free amount of £12570 (standard rate tax payer), then take 20% of remaining and deduct this from that figure then add back in the £12570 to work out my total income for year after tax. 

Dazed_and_C0nfused

Assuming you are referring to taxable income then you would need to include any other taxable income (even if taxed at 0%) but you are basically correct.

Add up all your (taxable) income.
Calculated the tax due.
Deduct the tax due from your income

End result total income after tax.

Bimbly

I like this tool: https://www.thesalarycalculator.co.uk/salary.php

Make sure you go to the Additional Options tab and click "I do not pay national insurance" (assuming all your income is pension income).

Flugelhorn

yes that tool is the most helpful  - it is a matter of adding everything together and then treating it as salary and then calculating the tax

Albermarle

The only issue is how your £12570 personal allowance is allocated. . It can not be allocated to the State pension as you pay no tax on this directly, so what happens is that your allowance is reduced by the amount of the state pension, before it is allocated to a different income stream.
You need to keep an eye on it as HMRC can make mistakes, especially when you start a new pension, job etc . Although if they do it will all get resolved at some later stage with a rebate/surcharge.

1931modela

Thanks to all that replied especially link to tool as that has confirmed what I had calculated.