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Tax on two small DB pensions
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If the pension with the cumulative tax code also gets the YTD fiures for income and tax from the employment then it might in fact cancel out. Pension 1 may then correct PAYE as if her income had dropped to just under £200/month rather than the combined £400.
If they don't get those YTD figures then the pension with the S1257 tax code will deduct no tax, the one with SBR will deduct 20%.0 -
For the coming tax year there is no reason why she shouldn't ask for her code to be split in 2 rather than a specific amount for one & the rest for another. This would avoid having to correct it every tax year. As in 1257 divided by 2 gives each pension 628 which will cover them both along with increases in the future until state pension starts.
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