Tax calculation on private pension

Maffania

Just a simple question please.  How do I calculate net amount on a monthly private pension of £2404.45 ?  deducting tax etc 

Ayr_Rage

Put the figure in an online tax calculator, not forgetting to say you don't pay NI.

https://listentotaxman.com/index.php?year=2024&taxregion=uk&excludeni=true&age=0&time=1&ingr=28853

eskbanker

Maffania said:

Just a simple question please.  How do I calculate net amount on a monthly private pension of £2404.45 ?  deducting tax etc 

There are various calculators, but if you have no other income and a standard personal tax allowance of £12,570, that equates to £1,048 per month, so you'd pay tax at 20% on £2,404.45 - £1,048 = £1,356.45, so tax of £271.29 leaves you with £2,133.16.

Maffania

Thank you very much for the explanation.  Much appreciated and helpful. 

Marcon

eskbanker said:

Maffania said:

Just a simple question please.  How do I calculate net amount on a monthly private pension of £2404.45 ?  deducting tax etc 

There are various calculators, but if you have no other income and a standard personal tax allowance of £12,570, that equates to £1,048 per month, so you'd pay tax at 20% on £2,404.45 - £1,048 = £1,356.45, so tax of £271.29 leaves you with £2,133.16.

Don't forget that when you start to draw your state pension, that is paid gross but still counts as 'taxable income' - a point which confuses many people posting on this board - and the tax code for your private pension will be adjusted accordingly.