No Way To Run A Football Club

[rob123]

I've tried following the gov.uk site for this but that just leaves me more confused! Perhaps one of our retired members could help/explain?

I receive a works pension of £12,000 and a state pension of £8,000 (figures rounded for simplicity}. I realise that state pension is paid without deductions but that it counts as taxable income so the pension plus works pension totals £20,000. So I assumed £20,000 minus the tax allowance of £12,570 leaves £7.430 to be taxed. But the tax code I've been given bears no relation to the tax allowance, I thought it would be 1257L. Am I missing something? Any help glady received.

[Padders]

1 hour ago, rob123 said:

I've tried following the gov.uk site for this but that just leaves me more confused! Perhaps one of our retired members could help/explain?

I receive a works pension of £12,000 and a state pension of £8,000 (figures rounded for simplicity}. I realise that state pension is paid without deductions but that it counts as taxable income so the pension plus works pension totals £20,000. So I assumed £20,000 minus the tax allowance of £12,570 leaves £7.430 to be taxed. But the tax code I've been given bears no relation to the tax allowance, I thought it would be 1257L. Am I missing something? Any help glady received.

Just got my tax code Rob,

I'm just as confused as you--       personal allowance  £12570

                                                                less state pension------£11719

                                                            total tax-free amount----£851.

My tax code is 85L.

Differs every year, I just grin and bear it...

[echo beach]

As I understand it the IR take your state pension away from the £12570 personal allowance and that leaves you with a tax free amount. In your case £4570 and so your code will be 457 followed by a letter. 

Deduct the £4750 from your remaining income and you'll be taxed on what's left. You'll also, of course, be taxed on most of what you spend it on!

echo.

[BTC43]

If your Wife or Partner is a non tax payer you can claim 10% of their allowance for yourself  in my case £1260.

[Jim Hardie]

1 hour ago, BTC43 said:

If your Wife or Partner is a non tax payer you can claim 10% of their allowance for yourself  in my case £1260.

Wife, yes.
Partner, depends what you mean. It has to be a Civil Partner.

[lazarus]

I’m always been of the mind that once you’ve retired after working 50 years, you’ve paid all the tax that’s due ,

[rob123]

Thanks for thee replies, all useful.

[tlangdon12]

On 12/03/2023 at 17:16, lazarus said:

I’m always been of the mind that once you’ve retired after working 50 years, you’ve paid all the tax that’s due ,

Unfortunately the economics of that just won't work. We need people to be paying more tax not less, so that essential public services can be maintained, and so that we can repay some of the debt we have incurred surviving the financial crisis, pandemic and the effect of the war in Ukraine on energy proces. 

[NicolaJayne]

On 10/03/2023 at 16:40, rob123 said:

I've tried following the gov.uk site for this but that just leaves me more confused! Perhaps one of our retired members could help/explain?

I receive a works pension of £12,000 and a state pension of £8,000 (figures rounded for simplicity}. I realise that state pension is paid without deductions but that it counts as taxable income so the pension plus works pension totals £20,000. So I assumed £20,000 minus the tax allowance of £12,570 leaves £7.430 to be taxed. But the tax code I've been given bears no relation to the tax allowance, I thought it would be 1257L. Am I missing something? Any help glady received.

what is your tax code?

is it 12570- state pension amount   then the result of that calculation divided by 10?

https://www.unbiased.co.uk/discover/pensions-retirement/starting-a-pension/your-state-pension#:~:text=If you qualify for the,or £10%2C600 a year.