Does anyone know if my nra 60 pension payment tax and pay are combined with my wages or are they separate accounts
Thanks
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Tax
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RobertT
- EX ROYAL MAIL
- Posts: 6644
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: Tax
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.
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.
Links to all RM pension related websites are here
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freespeech
- MDEC
- Posts: 762
- Joined: 28 Jun 2007, 16:35
Re: Tax
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.