Salary and Pension drawdown

I have 2 tax codes one for my main income from work and one for a pension pot I drawdown from, am I correct in that the drawdown will be taxed and treated separately and will not affect my tax code on my main income I have the 1257L code for my salary and BR for the pension pot. The main reason for querying this is that in the last tax year although the drawdowns were taxed at BR my tax code for my salary was reduced. It is only a very small pension pot and I only drawdown around £2000 for the year.

Hi,

Both incomes will be treated separately with regards to Income Tax and have 2 seperate tax codes allocated. The personal allowances for the current tax year are £12570, if you earn above this with your employer any secondary income will be taxed at 20% or 40% depending on your total income for the year.

You can below a link to the Income Tax rates to determine your highest rate of income tax.

Income Tax rates and Personal Allowances

Sometimes a tax code at your main source can be reduced for various different reasons, to determine the reason for this, you would need to contact our Income Tax team to review your records.

Income Tax: general enquiries

Thank you.