Am I receiving the correct UK Pensions with Tax Code S418L
Could some kind soul please help me out with my year 2021 -2022 UK Tax Deductions and
my UK PAYE Tax Code S418L.
I believe that I maybe paying the wrong income tax for year 2021-2022?
I punched-in my joint pensions years income into Money Saving Expert Income Tax Calculator, it came back that
my yearly income after tax should be £15,747/montly income £1,312
However, I'm currently averaging £1,254 a month and not as calculated by the above method!
My info, I'm a single Scottish male pensioner, aged 69, I live in Scotland, I pay no UK National Ins.
I have a company pension + a UK State Pension, I get my State Pension + Works Pension paid
to me monthly.
According to my UK Government Gateway Account statement my combined state/works 2021-2022 pensions will give me
a yearly income of £16,539
My tax free allowance is £12,639
This leaves me with £3,900 which is subject to income tax at 20 percent - £780/£65
a month, I will average after tax a monthly income of £1,254
I pay income tax on my works pension - Tax Code S418L, my last works pension statement - 18 June 2021, I
paid £70.25 pence tax on my June 21 income.
If I continue to pay monthly tax at the above rate I will have paid tax at a higher rate for year 2021 -2022, 12 x £70.25 = £843.
This is all very confusing to me, could someone please explain to me in simple terms that my monthly income is correct according
to my UK Government Gateway Account Statement?
Thank you ever so much.