1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Deductions from pension

Discussion in 'Retirement' started by alfredrussell, Feb 25, 2012.

  1. alfredrussell

    alfredrussell New commenter

    This may be a very obvious question so, my apologies. I am taking ARB from September. I will be 58. I know you pay income tax on the TP. Do you pay National Insurance?
     
  2. alfredrussell

    alfredrussell New commenter

    This may be a very obvious question so, my apologies. I am taking ARB from September. I will be 58. I know you pay income tax on the TP. Do you pay National Insurance?
     
  3. No. A pension isn't earned income.
     
  4. I suspect you are wrong here, your pension is taxed if you get more than your tax allowance. I took my pension and carried on working so my overall income is above my allowance and I am definitely paying tax on it. In fact, I have just had a letter from the tax office telling me the tax code for my employer and a different one for the TPS. This is because my allowance is set against one income so the other income is taxed entirely.
     
  5. Peter is saying that the OP is right to say he has to pay tax but that he doesn't have to pay NI.
     
  6. Spot on.
     
  7. alfredrussell

    alfredrussell New commenter

    Thanks, people.
     
  8. Thank you 4termsandcounting
     

Share This Page