No mate ... Archers is on the money ... you pay tax on your full wage ... some of that may then go into a pension scheme ... when you start to draw that pension it gets taxed ... again ...
So pension contributions aren't free from income tax, you sure mate? https://www.gov.uk/tax-on-your-private-pension
Think it depends on the type of pension scheme ... but your contributions usually come out of net pay ... i.e after income tax and NI ...
You don't know what you are on about fosse (unless in the past before the rule changes like 15 years ago). Any money that goes into a pension right now in not taxed and you get your gross. Thats why most people put it in as it's tax efficient especially if you are a higher rate tax payer and also for anyone that earns between 100k -> 120k and gets taxed at around 60% (as you lose your personal allowance), people just chuck it into their pension
Think that's the point Bobby ... I'm actually drawing one pension even as I still work now ... the contributions were built up since I started working in 1986 and I paid tax on the income from which they were made... I am a higher rate tax payer and I lose 50% of the monthly pension payment as a result ... suspect Archers may be experiencing similar ...
You will always pay tax on any pension you draw whst still working because it's classed as taxable income. Yes you have paid tax on the money you put in but haven't paid any tax on the invested income so that then gets linked to your earned income when working. Probably a much better way to explain this but it's late and I can't be arsed.
yes but the money you put into your pension didn't get taxed in the first place so of course when you draw you it now you pay tax. Now if you fancy drawing your pension now whilst also working of course it's classed as additional income and comes as taxed. If you hadn't put it into your pension back in the yonder years (presumably you were also paying tax then), then you have just differed when you decided to pay tax. That's not even accounting for the 25% tax free pension you could take as a lump sum either (if you took it out when these rules were in place). If you really wanted to, you could wait til you aren't working anymore and then your draw your pension to save on higher rate tax unless you have a **** load of investments and properties in which case it probably is right that you should be paying tax on your pension
Nope .. I started working a couple of years earlier ... but there was no pension scheme ... I joined the civil service in 1986 ...
Hmmm ... not sure I follow your logic there Bob ... the historic contributions came from a net pot of money ... the gross had already suffered income tax and NI ... therefore, when I want to have some of that net pot at a later date, and that receipt gets taxed, then the original gross pot has effectively been partially taxed again ... may just be semantics, but you can see where I'm coming from ...
I’ve been in collar since 1977 mate. Longer actually, cos I had plenty of jobs when I was still at school. If I was a horse, they’d shoot me.
