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New State Pension & Tax
Comments
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Thanks very much for your kind attention and knowledge. Thanks also to the other helpful contributors.
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The £225 unpaid tax is what would have been due on the 3 pension payments pre SP if the (correct) cumulative code of 588 had been used. It simply spreads that over the next 9 months.On a code of 588 (£13830 - £7950) over the year you would pay £76.80 tax on your pension each month. The 3 months Apr to Jun would have had £225.40 deducted on that basis. £225.40 / 9 = £25.04 + £76.80 = £101.84.1
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molerat said:The £225 unpaid tax is what would have been due on the 3 pension payments pre SP if the (correct) cumulative code of 588 had been used. It simply spreads that over the next 9 months.On a code of 588 (£13830 - £7950) over the year you would pay £76.80 tax on your pension each month. The 3 months Apr to Jun would have had £225.40 deducted on that basis. £225.40 / 9 = £25.04 + £76.80 = £101.84.
Thanks very much - you have been so kind to put my mind at ease both here and on my other quandary on NI contributions.
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