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Why so much tax on a very small pension?

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Comments

  • mrsyardbroom
    mrsyardbroom Posts: 2,034 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Marcon said:
    I tried to ring the helpline for this question but after ten minutes of listening to recorded messages telling me I could go through everything online or hold on for an advisor, they asked me a lot of security questions and then said they couldn't take my call, good bye.
    I have a small works pension coming in which is only £901 a year. On the P60 it gives the total for the year as £901.85 and the total tax for the year as £38.40.
    On the advice of payment for the month and for every month for the rest of the tax year it says the gross amount I will get is £76.65 and tax will be £11.80.
    This is what I don't understand. I get paid per calendar month and 12 x £11.80 = £141.60.  That's a lot more than £38.40.
    Can you see why I'm puzzled?
    I hope this isn't going to be repeated on my other works pension or I will be seriously out of pocket.
    That's about another £8.60 a month in tax. Has your state pension gone up by about £516 a year?
    Not as far as I know.

    Don't mess with pensioners. :cool:
  • xylophone
    xylophone Posts: 45,643 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You will have received a  statement of increase in benefits  showing your weekly state pension amount for the tax year 25/26.

    What is shown?

    What was the weekly amount for 24/25?


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