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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15975
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I receive my pension (Ministry of Defence) under the tax code

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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?
Can you tell me your date of birth and how much the MOD pension is please.
Customer: replied 2 years ago.
DOB 11 June 1958. Pension £27,208.68 a year. Plus a war pension of £2789 a year. No other income.
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 2 years ago.
Does the NT on my pensions mean I can earn up to my personal allowance tax free?
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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