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Posted Thu, 06 Apr 2023 16:39:34 GMT by Julian Berkeley
OK, this is going to sound like a dumb question! I have a small self-employed business and so am registered for self-assessment. In addition to the income from the business I declare my Teachers' Pension and tiny annuity from a private pension. The pensions are taxed at source. I've used the pension worksheet on the Self Assessment form when declaring income from these pensions. When the two pensions plus my gross income from my business are totalled, the figure I'm going to have to pay income tax on is all that above £12,570. However, I've already paid tax, at source, on the two pensions, so it feels like I'm paying tax twice on these, which doesn't make sense to me. Without giving the actual figures, it's not that easy to explain, but I am puzzled at the size of the amount of tax I owe as I feel I've already paid income tax on the two pensions. Indeed, I have to pay ALL the income from the small annuity back to HMRC in tax! Any advice/explanation would be much appreciated!
Posted Mon, 17 Apr 2023 11:59:43 GMT by HMRC Admin 19

When completing your Self Assessment tax return, you should enter, the full amount of pension received from your two pension sources and, the amount of tax already deducted from your pensions. By doing so, you will get full credit for all tax already deducted, as you will see when you check your tax calculation, which will automatically include your personal allowance of £12570.

Thank you.

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