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Income tax

Marleybobs
Posts: 4 Newbie

Have a pension from a previous employment and a second income. Tax free allowance against my pension income. New income is being shown as the D0X tax code telling me I will pay 40% tax on all the second income. In total, both incomes only take me 18k over the £50,271 higher tax bracket. Contacted HMRC and they inform me it is correct?..
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Comments
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What sort of pension is it?
I have asked for this to be moved to the saving tax board where this thread belongs and where you are more likely to get help.0 -
Police pension0
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Marleybobs said:Police pension0
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Just short of 30k for the pension and 38k for the 2nd income0
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If that is for the remainder of this year then it probably is correct. You will pay 40% tax on that income for the rest of the year, not on the full year's income. You need to check your on line tax account to ensure the correct income for the year is shown against each source. Next year you will get an "adjustment to rate band" against the main income code for the over the threshold amount.0
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Thank you. So 40% tax for the remainder of this tax year and then for 25/26 it will adjust?..0
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Marleybobs said:Thank you. So 40% tax for the remainder of this tax year and then for 25/26 it will adjust?..
I think you have a look at the estimated earnings/pension income HMRC used for each source. It is the figure you will see on your P60 for taxable pay/pension that they are interested in, not your "salary".1 -
£38000 pension income and £30000 other income is a total of £68000.With a standard personal allowance of 12570 total tax due is £14632.
Code 1257L can be applied to the pension income - tax of £5086 would be payable.A code of K1773 can be applied to the other income of £30000 collecting £9546.Presumably the pension income increases by 1.7% from April!0 -
[Deleted User] said:£38000 pension income and £30000 other income is a total of £68000.With a standard personal allowance of 12570 total tax due is £14632.
Code 1257L can be applied to the pension income - tax of £5086 would be payable.A code of K1773 can be applied to the other income of £30000 collecting £9546.Presumably the pension income increases by 1.7% from April!0 -
Dazed_and_C0nfused said:[Deleted User] said:£38000 pension income and £30000 other income is a total of £68000.With a standard personal allowance of 12570 total tax due is £14632.
Code 1257L can be applied to the pension income - tax of £5086 would be payable.A code of K1773 can be applied to the other income of £30000 collecting £9546.Presumably the pension income increases by 1.7% from April!
So, BR at the other income of £30000 collects £6000.
K516 on the pension income of £38000 collects £8632!0
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