I checked my Gov.HMRC to see what my tax code was for 26-27. Low and behold. it’s 3L ffs. Which equates to £34.00. So they want to tax my private pension to the tune of nearly £4,000! thats 20p for every single pound above the £34.00 allowance. Utter bastids.
The state pension is taxable, so the second someone has a private pension, they use the allowance against the state pension and then whatever is left becomes your new allowance. Some end up on a K code, so they owe tax before getting a penny from other sources.
It’s a nightmare. I had to ensure they got my mum’s tax right as they just guessed and were quite a way off.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.
Mark