Uk Tax

[Dagman]

Hi all, I am taking early retirement at the end of this year. My wages have put me in the 20% tax bracket. When i leave, my db pension will only pay out £500 a month. Will i still pay 20% tax on this until the end of the tax tear in april? TIA

[woofgang]

That is what happened to me and then I got a refund the following year. I believe if its going to cause you hardship, you can ask for an emergency code.

[Old_Geezer]

I seem to have got a refund every year since I stopped being employed. I didn't much notice that first year, had enough in the bank, merely checked the pension was paid in. Refund was a nice surprise.

[Hopkirk]

I think you will, as it is taxable.

There may be a small adjustment in tax, depending on how much have earned so far this year.

[davebro]

What is a db pension - what is it for, who pays it?

[Old_Geezer]

disability ?

[Dagman]

A db pension is defined benefits, a great pension that most companies have phased out or trying to. Ours ended 10 years ago to be replaced with a dc pension which isn't as good. So it looks like I will be losing 20% of my 500 every month until april?

[davebro]

I'm not bang up to date with PAYE but if your current tax code is notified to your pension payer you should pay less (or maybe get refunded) with your monthly payments so that it comes out right in April.