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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 receive my pension (Ministry of Defence) under the tax code

Resolved Question:

I receive my pension (Ministry of Defence) under the tax code NT. What are the implications if I get a job? Also what can I earn before being taxed?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Can you tell me your date of birth and how much the MOD pension is please.
Customer: replied 1 year ago.
DOB 11 June 1958. Pension £27,208.68 a year. Plus a war pension of £2789 a year. No other income.
Expert:  TonyTax replied 1 year ago.
Thanks. Are any of your pensions fully tax exempt (the war pension perhaps?) as the total exceeds the personal allowance of £10,600 by some distance? An NT tax code means No Tax.
Customer: replied 1 year ago.
Does the NT on my pensions mean I can earn up to my personal allowance tax free?
Expert:  TonyTax replied 1 year ago.
There are some notes on exempt pensions here, here and here. If your pensions are rightfully fully tax free then you pay income tax on earnings over £10,600 at 20%, the first £10,600 being tax free.. Earnings over £42,385 will be taxed at 40%. I hope this helps but let me know if you have any further questions.
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