I think I might be a higher rate tax payer!

[MagicWorkout]

This is something that has never troubled me before!

I have a salary slightly more than £46k which I live very nicely on thank you

I've recently acquired another income (pension) of slightly over £5000 pa.

This pushes me just over the £50200 for higher rate tax.

Both incomes are taxed at source. Will "they" work out what tax is due on the second income or do I need to do something?

You need to do a tax return and pay any excess owed

Even though I've had a tax code assessment that includes both incomes?

Do you pay pension contributions out of the £46K Tax is based on income after pension contributions

@grannycake

Do you pay pension contributions out of the £46K Tax is based on income after pension contributions

Yes! So probably I haven't gone over. Of course.

I think my tax codes should mean I pay the correct tax without a tax return but was confused as to why none of it was at the higher rate

Probably too late now, but depending what sort of pension you have, it is sometimes possible to adjust the payment amounts, or to take partial encashment (each with a 25% tax free element) to keep just below the 40% tax threshold. Or even to alter the date of payment so only 11 "monthly" payments fall into this tax year.

You can still make limited pension contributions.

Tax bands are currently frozen, so you will not be emerging from the 40% rate.

There is quite a good tax calculator here
www.which.co.uk/money/tax/tax-calculators

HMRC will eventually work it out, but you ought to notify them of your sources of income so they can issue tax codes.

I'm sure you'll agree that having plenty of money, and paying some tax on it, is preferable to not.

Here is the calculator if you take a lump sum or partial encashment

www.which.co.uk/money/pensions-and-retirement/pensions-retirement-calculators/pension-tax-calculator-af1sc5u1y9mc