Help, My Wages and Pension = 40% Tax Bracket

Discussion in 'Armed Forces Pension Scheme' started by MacSapper, May 12, 2008.

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  1. I joined Civ Div in 2001 after 22 years.

    I got an average paid job and slowly worked my way doing Engineery things.
    My Wages have always been Taxed at source PAYE and my Pension was taxed at source as well.

    A letter from Herr Taxman bombed through my letter box last Friday, it stated that.

    My Pension (only £4K) is earnable income and when put on top of my wage I am into the 40% tax bracket and I now owe nearly £5K in outstanding Tax from 2001 to 2006.

    This will be taken off me starting from April next year 09.

    If this is the case then I have already accrued another 2 years outstanding on the top already so next year I will be paying 40% tax on top of what I apparently owe already FFS.

    I only earn £38 K with a £2K travel allowance so I am right at the bottom of 40 percenters so I will be totally Rubber Ducked next year.

    Can the Tax Bastirts do this to me ?

    I thought our pension was taxed separately so if they take this much tax off me then what the fk is the point of serving and spilling blood for these civil servant Keech's as there is no benifit from it.

    Thanks in advance for any suggestions / help.


    ps, if you are a civil servent who wants to help then sorry for the above rant.
  2. ugly

    ugly LE Moderator

    Try Tax Twat as he by his name works for beelzebub! he is also very helpful!
  3. Read my thread in the same forum, might be of help.
  4. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes

    Sounds like they've been taxing it as a separate income and not realised that your combined income takes you more over the threshold.

    Once they've realised then they've hit you for back dated tax (i.e. the difference over 36k that should have been paid) so it sounds like they're entitled to claim it back, even though it may have been their error.

    As Ugly says though, have a word with our regular tax man to check my understanding.
  5. Bad luck!

    Gather together all your payslips, pension slips, building society account books, etc etc, and take them to a tax accountant. Tell them of your plight and let them sort it out. It will cost you but it will still be cheaper than having the Revenue help itself to the contents of your wallet!

    Whether you like it or not, you are responsible for telling the Revenue about all your income.

    If you are just over the 40% limit, you could approach your boss and ask for a reduction in pay and hours that will bring you under the 40% limit!

  6. Unlucky.

    I'd bet you've not filled in a tax return; the Feds have caught up with you.

    Due to the wonders of the modern pensions arena you can reduce your taxable income by making a contribution... to a personal pension.

    Litotes' suggestion is not quite as daft a you might think; ask your boss about Salary Sacrifice - best of all, see an IFA.