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Posted Thu, 25 May 2023 17:49:56 GMT by Jacquie Beckham
I am in receipt of a pension but also work a few hours a week in retail. Last year I split my tax free allowance between the two with the pension having the higher allowance as this was the biggest income even though my total income was not enough to pay tax. This year I will pay tax. My employer has obviously informed HMRC of my expected earnings and my tax codes have been adjusted to suit this meaning I am now paying tax on my pension and will end up paying tax on my second income as the figure supplied to HMRC does ot take into account the additional hours I am expected to work. My instinct says to allocate enough of my tax free allowance to my pension to make this tax free and just pay tax on my second income. Would this be logical or does it not matter? Many thanks
Posted Tue, 30 May 2023 13:25:13 GMT by HMRC Admin 8
Hi,
You can allocate the allowances as you wish. Some people prefer for the pension to be tax free and all tax taken from their employment.
Thank you.

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