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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a state pension and two private pensions, the first

Resolved Question:

I have a state pension and two private pensions, the first private pension is using my tax coding, but the 2nd is using BR is this correct
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me how much pre-tax each of your pensions is annually please.
Customer: replied 2 years ago.

apology for the delat I receive 184.41 state pension, 1st private 262.51 and 2nd 7487.76

Expert:  TonyTax replied 2 years ago.

Thanks.

Just to clarify, is the state pension paid monthly or every 28 days (four weekly)? Is the 1st private pension figure of £262.51 an annual or monthly figure?

Customer: replied 2 years ago.

state pension paid every 28 days, 1st pension paid monthly 262.51

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.

I'm back.

I'm assuming that you were born after 5 April 1948.

Your annual income is £13,035 (£2,397 state pension + £3,150 private pension + £7,488 private pension). You have a personal allowance of £10,600 so you should pay tax at 20% on £2,435, £487 per annum or £40.58 per month.

You should have the personal allowance against the larger pension. The state pension should be deducted from the personal allowance to leave you with net allowances of £8,203 (£10,600 - £2,397). Of those allowances £7,488 should ensure you pay no tax on your largest pension. The balance of your allowances of £715 should be transferred to the £3,150 pension (£262.51 x 12) so that you pay tax of £487 on £2,435.

Call the tax office on the number here to have your tax codes reviewed and changed if necessary. They will do that while you are on the phone to them.

I hope this helps but let me know if you have any further questions.

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