Tax year ending

[stevewool]

Right boys,
The start of a financial year is April 1st, so if I retire and Finnish work by that date do I pay tax on any amount upto the tax free amount for the new year just starting
In my mind what I am thinking is to draw on my private pension the full amount before I pay any tax, I am not on about the first quarter which is tax free, so that's around the £10000+,
Plus if I do work say a month or two after April that will be deducted from the total figure of tax free earning,
I hope you understand what I am trying to say..

[Terpe]

It's like this Steve....
If your income goes above your entitled personal allowance before the end of the Tax Year you'll be taxed. HMRC will inform the income source to deduct. Period.
You might be able to claim back or not.

Means if the tax free personal allowance is £11k and your income is £12k within the tax year then you'll be taxed on the £1k at the going rate

I'm currently in process of transferring one of my pensions to Philipppine tax system liability. Means moving from a 20% tax base to a Philippine 0% base
Nice saving for me. :xxgrinning--00xx3:

[fred]

'm currently in process of transferring one of my pensions to Philipppine tax system liability. Means moving from a 20% tax base to a Philippine 0% base
Nice saving for me. :xxgrinning--00xx3:

I thought that is what you would do!!:xxgrinning--00xx3:

[Harry T]

Right boys,
The start of a financial year is April 1st, so if I retire and Finnish work by that date do I pay tax on any amount upto the tax free amount for the new year just starting
In my mind what I am thinking is to draw on my private pension the full amount before I pay any tax, I am not on about the first quarter which is tax free, so that's around the £10000+,
Plus if I do work say a month or two after April that will be deducted from the total figure of tax free earning,
I hope you understand what I am trying to say..

Steve if i understand you right, you are thinking as an example to withdraw £10000 (25%) Tax Free from your pension, thinking that the £40k is your Total pension...

It works like this for every pound that you withdraw from your Personal pension, Example £100 you will pay No Tax on the first 25 pence of every Pound of the example (£100) then you will pay Tax on the remaining 75 Pence of every pound of your (£100) at YOUR Standard rate of income Tax. It doesnt mean that from a £40k Pension Pot you can withdraw the first £10k Tax free, then when you withdraw the remainder every pound is taxed at your standard rate tax band.

I hope thats understandable.. :biggrin:

Looking at what Peters in the process of doing, that has to be what you need to be looking at Steve, that would save you paying 20% Tax on your pension.

[stevewool]

Thanks harry for your reply.
I have one private pension pot of around £53,000 and a few others too total around 80,000 to 90,000.
The first lump sum i have already took the 25% when i hit 50 years of age and the ex took the other half of that amount, so i cannot take anything from that tax free, but i can from the other but i am not looking at that just yet.
What i am trying to sort out is getting all the cash in my hands so i have complete control and if anything happens its all there for Emma too.
So what i am trying to do if it is right for me is to take as much as i can each year with out paying tax and before my state pension kicks in, so its around £10600 per year, i know there may be charges to look in to with my provider and it may work out doing it this way its wrong , but again it may work out the best way too.
I have another meeting this coming Monday with the financial advisor as i have just joined two pensions together and all the paperwork is ready to sign.

[stevewool]

I'm currently in process of transferring one of my pensions to Philipppine tax system liability. Means moving from a 20% tax base to a Philippine 0% base
Nice saving for me. :xxgrinning--00xx3:

Again simple thinking Steve is asking again this 20 percent thats only if you go over your tax code, so if you are under that then you pay no tax

[Terpe]

Again simple thinking Steve is asking again this 20 percent thats only if you go over your tax code, so if you are under that then you pay no tax

Yes, that's true.
As it stands right now. More about that in a mo.

Not much I can do about my own circumstances given that I have only one private pension left. My other pensions are civil service and state pension which cannot be changed or have their liability for tax transferred.

Did you know that the UK government has already undertaken a consultation to determine if ex-pats should qualify for a UK personal tax allowance?

Who knows what's around the corner.

We all make a plan as best we can.
The facts are what they are. It's what we make of them the facts that matters.

Here's some interesting reading:-
"Restricting non-residents’ entitlement to the UK personal allowance"
https://www.gov.uk/government/consultations/restricting-non-residents-entitlement-to-the-uk-personal-allowance/restricting-non-residents-entitlement-to-the-uk-personal-allowance

[jonnijon]

Just read that Peter, from what I can see if we have no other income from UK, only pensions there will be no change. Think I am correct.:olddude:

[stevewool]

Just read that Peter, from what I can see if we have no other income from UK, only pensions there will be no change. Think I am correct.:olddude:

Thats what i am thinking or is it hoping too,

[stevewool]

Here is another questions boys, "its like a pub quiz aint it". THIS IS JUST A THOUGHT AND I AM NOT RICH.
Right i take early retirement at 59, and the only income i have coming in is £4,800 each year from a rental property so thats around £400 a month.
I have savings of around £140,000 plus a private pension of £80,000.
Plus i will have a state pension if i reach 66 that may be around £600 a month but with the rental this will put me over my tax threshold but that in 7 years time.
Savings are in ISAs so thats tax free, plus my personal savings i can have £1000 interest tax free so thats around £75,000 in savings.
Remember i will have 7 years of supporting ourselves on savings so i know that will go down a little.
If i move in time cash into Emmas accounts over in the Phils will i have to show them to the tax man.
These figures are a rough guide only