Hi
Sorry to be so obviously dense but mathematical logic entirely defeats me. If some genius on here could help I’d be hugely grateful. Thanks.
The situation is:
I’m a basic rate / 20% tax payer.
My personal allowance is £12,570
I have an occupational pension of £28,678.20 pa paid monthly
After tax this paid out £2,121.45 pcm on a 1257L tax code
Now, in addition to the occupational pension, I’m getting an sp of £8,537 pa (paid tax free every four weeks).
My question is:
Once I’m back on a regular, rather than emergency, tax code, how much more pension income than at present can I expect after taxes, and what is the formula for calculating it, please? Presumably, once I have the annual amount I can just divide by 12 to get the equivalent of an aggregated (occupational and state pensions) monthly income?
As the PA was applied to my occupational pension until now, but will now come out of the sp first with only the remaining balance being applied to the occupational pension, my understanding is that I’ll get £569.13 pcm extra (£8,537.00 -20% = £6829.60pa), albeit calculated in a different order.
I’m sure I’ve got this entirely wrong but I’m at a loss s as to how to figure it out….. thanks for any help!
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