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Pension and tax allowance

(4 Posts)
ByHappyChance Mon 15-Oct-12 14:24:19

Is it better to apply your tax allowance to your salary (£25000pa) or to a pension (£9000pa)?
Many thanks!

riksti Mon 15-Oct-12 17:53:53

I don't think it really matters unless they're paying at different intervals. If you get your salary monthly and the pension also monthly then there isn't much of a difference. Even so, the overall tax bill should be the same regardless.

LIZS Mon 15-Oct-12 17:57:23

Makes no odds. Probably easiest to apply to the larger amount via paye otherwise eventually you may find allowances being split between both which can lead to over/under payments of tax.

Notmadeofrib Mon 15-Oct-12 20:19:07

If some of it is a state pension you have no choice, they will collect via a salary. Be aware thought that this exact scenario is where the tax collection system has gone wrong before and people have ended up under paying. As I understand the computers have been upgraded now, but ALWAYS check that you believe the code you have applied is correct. If you under pay they WILL want it back!

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