pension allowance

[percypineapple]

Just tried to work out how much tax I will pay on my pension, but very confusing government web site. don't need it to the exact penny, but a rough idea would be good. I am 66, my wife is 62. I have a pension from my old employer of £420 per month. my wife has no private pension. How much should we get and at what point do we pay tax, and at what rate?

Thank you all.

[factor-fiction]

This site seems straightforward.
http://www.hmrc.gov.u...s/paying-retire.htm#3
The standard personal allowance for age 65+ is £9940.
I don't know what your state pension is, and whether you have other income such as savings interest, but based on your private pension earnings I doubt your total income will exceed the tax allowance- so your tax should be zero

[Boto]

Add up your income - state pension is taxable, so add it to your private pension, and any other income you have, deduct your personal allowance (9940 for this year, from April 6 it is 10500). The amount of tax you will pay is 20% of the total. e.g. if your personal pension is 5040, state pension is, say 5200, total 10240 less PA 9940, = 300 x 20% = £60 for this year.

[factor-fiction]

I would check that you aren't already having tax deducted at source, because you may be paying too much. ( I have a small private pensions and 20% tax is deducted at source).

I agree with Boto's answer (I was using the new tax allowances which don't come in for another 5 weeks). I'm not sure how state pensions are paid for married pensioner couples- do you each get the same pension now?

[dzug2]

You and your wife are treated independently for taxation purposes - what tax she will pay depends on how much her state pension is - if any.

She will only get the standard personal allowance - not the age allowance.

[factor-fiction]

Yes, based on the information we have here the only person who could possibly have to pay some (small amount) of tax is percypineapple. Mrs pineapple's income will fall well below the tax threshold.