>> I remember mentioning on here some years ago that when I received my state pension
>> it was effectively taxed at the higher rate a fact that many on here denied
>> was possible.
Yes. If State Pension plus other income whether occupational pension or pay mean that, after applying the appropriate allowances, you've enough income to be in the 40% band then you'll pay 40% on the top slice. It might be done by reducing allowances or via Self Assessment but the outcome at the end of year reckoning is the same.
One of my volunteer colleagues at Citizens Advice had Occupational Pension as a retired senior teacher plus State Pension. Didn't want to follow possibility of paid CA work because it would tip her into the 40% band so £10/hr gross was £6 take home; not adequate recompense for the hassle.
Last edited by: Bromptonaut on Tue 6 Oct 20 at 15:34
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