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| *The Commerce Journal>>>United Kingdom Taxes |
My husband cashed in a private pension some years ago he now recieves a small payment every 3 months. as? |
a result as he is still working full time, his wages are classed as a second income and he pays really high tax every month. is there any way out of this,, If he is some way off retirement age, he should ask the tax office to treat the pension as his second income and allocate all his tax free allowances to his job. He will still pay the same amount of tax overall, but the tax on his wages will go back to what it was and basic rate tax will be deducted from his pension. I am guessing that the pension is less than 拢5225 a year and so at the moment he is not making full use of his allowances. A simple call to the tax office will sort it. All our income is subject to tax. I too have a monthly pension, and this uses up my tax allowance. Any income obove your tax allowance would be subject to a higher tax. I can only suggest tha he invests his payments in a high interest savings account or ISA. no i am afraid that pensions are subject to as much tax as a person working. Income is aggregated together for tax purposes, and tax is deducted from one source. He should be paying basic rate, unless his income puts him in the higher tax bracket. |
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