Thanks Fortune. I know that but I'm wondering what the threshold will be ie what is the figure we start paying tax I'm wondering will we be over whatever the threshold is just with our pensions if that makes sense.Money taken from the ARF is treated the same as any other PAYE income. Some of your tax credits and standard rate cut off will be allocated to your state pensions, and anything left over can be allocated to the ARF withdrawal.
It depends on how much your pensions are and what the thresholds at the time are. I would expect that the pensions will use up most or all of it.Thanks Fortune. I know that but I'm wondering what the threshold will be ie what is the figure we start paying tax I'm wondering will we be over whatever the threshold is just with our pensions if that makes sense.
Thanks S Class that's what I wanted to know.Assuming that both of you would have personal and employee tax credits and age tax credits, your total tax credits would be 7990 euro.
You could earn 39950 euro before having any tax deducted from your earnings.
Would everything over the 39950 be taxable at the higher rate of tax? My query then is whether there is any benefit in leaving the ARF there if we are going to be taxed on it anyway due to our pensions because we have mortgage payments of c 2500 per month which will run until my husband is 70 in 12 years. Would there be a benefit to taking the ARF now to pay off some of the mortgage with it? Thanks for any info at all.Thanks S Class that's what I wanted to know.
Thanks that's great.No, you would still have your 20,% tax band. This could be anything from 51000 euro up to 84000 euro depending on how much earnings you both individually have.
So you would have considerable extra capacity for earnings at 20% tax.
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