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Tax

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
Ted the dog
EX ROYAL MAIL
Posts: 41
Joined: 28 Sep 2018, 10:29
Gender: Male

Tax

Post by Ted the dog »

Does anyone know if my nra 60 pension payment tax and pay are combined with my wages or are they separate accounts
Thanks
RobertT
EX ROYAL MAIL
Posts: 6644
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: Tax

Post by RobertT »

Most people will have a main income to which the Personal Tax Allowance is applied, in your case probably your wages. And any secondary income, such as your pension, will then be taxed fully.

It is possible to split your PTA between two or more sources of income, but ultimately you will still be taxed on any earnings over the combined rate.
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Ted the dog
EX ROYAL MAIL
Posts: 41
Joined: 28 Sep 2018, 10:29
Gender: Male

Re: Tax

Post by Ted the dog »

Thank you Robert
freespeech
MDEC
Posts: 762
Joined: 28 Jun 2007, 16:35

Re: Tax

Post by freespeech »

The real faff is getting the split right for the inland revenue. If your tax allowance is too high on one income you may not pay any tax because you haven't earned enough (so some of your code is not used). On the other income it may be too low so you pay more tax. I know this sorts itself out but it invariably means tax code changes every year to balance the under/over paid tax.