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Posted Thu, 25 Jan 2024 17:52:52 GMT by
Hi admin, turning 60 in August this year and am contemplating taking my workplace pension but continuing to work on for 2 more years. Trying to understand how I calculate what tax I would pay on a) my salary £86000 b) pension income £26000 and c) would I pay tax on savings from lump sum £170000. Live in Scotland have tax code S1275. Thanks in advance for any guidance.
Posted Wed, 31 Jan 2024 12:14:13 GMT by HMRC Admin 25
Robert Loch,
HMRC cannot comment on future events as legislation and/or plans may change.
However, based on current guidlines.
Please refer to:
Thank you. 
Posted Wed, 31 Jan 2024 12:36:21 GMT by
Thanks, i had asked how to calculate the tax though. I have read the link posted here previously but this does not explain how to calculate tax on both income from pension and earnings. Hence my question. I didn't ask for future events etc i asked how to calculate. Thank you
Posted Fri, 02 Feb 2024 09:23:24 GMT by HMRC Admin 25
Hi Robert Loch,
Based on current guidance, as your total income would now be over £100,000, your employment tax code would change as full personal allowances would no longer be due.
The pension payment of £26000 would be liable at 42%.
Any interest earned over £500 would be liable to tax at yor highest rates.
Thank you. 
Posted Fri, 02 Feb 2024 09:33:35 GMT by
Hi, many thanks for the information very much appreciated regards Robert

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