Do i need to declare this??
Discussion
Hi chaps looking for some advice as im not a powerfully built director.
I have a tax free Military pension which is paid monthly along with my wage. This month its bonus time and its looking good normally this is sorted by my work and taxed accordingly . But after lodging an appeal with the military my Pension has been changed and I will be getting a lump some from being underpaid for 3 years. Do I need to declare this?
With my annual salary and pension back pay and bonus I will be over the 40% bracket do I need to declare the extra im over? but will drop to just below it when the after this month? its looking like im going to be 35K over the 40% on my annual earnings what is meant to be tax free.
I have a tax free Military pension which is paid monthly along with my wage. This month its bonus time and its looking good normally this is sorted by my work and taxed accordingly . But after lodging an appeal with the military my Pension has been changed and I will be getting a lump some from being underpaid for 3 years. Do I need to declare this?
With my annual salary and pension back pay and bonus I will be over the 40% bracket do I need to declare the extra im over? but will drop to just below it when the after this month? its looking like im going to be 35K over the 40% on my annual earnings what is meant to be tax free.
Not an expert, but a quick google threw up this forum link on the Army Rumour Service. http://www.arrse.co.uk/community/threads/tax-on-pe... Which included this info:
"A soldier will be in receipt of a War Pension if he was discharged from service as a result of an injury whilst in an operational theatre. I understand that such pensions should not be taxed.
A soldier will be in receipt of a Service attributable pension if he was discharged from service due to an injury that was received as a result of his service; for example, an injury sustained during training. I understand that such pensions are taxed normally."
From what you said (tax free Mil pension) then it looks like you are in receipt of a War Pension and so your back dated lump sum should also be tax free. A call to HMRC should be able to confirm this (in theory).
Hope this helps.
"A soldier will be in receipt of a War Pension if he was discharged from service as a result of an injury whilst in an operational theatre. I understand that such pensions should not be taxed.
A soldier will be in receipt of a Service attributable pension if he was discharged from service due to an injury that was received as a result of his service; for example, an injury sustained during training. I understand that such pensions are taxed normally."
From what you said (tax free Mil pension) then it looks like you are in receipt of a War Pension and so your back dated lump sum should also be tax free. A call to HMRC should be able to confirm this (in theory).
Hope this helps.
Ive spoken to them this morning and they have said I will be taxed on my earnings including my pension above the 40%. Ive went back to them with a reply from the vets agency now and waiting on there take of it.
they were under the impression I would not be taxed as its my pension that takes me over not my earnings.
they were under the impression I would not be taxed as its my pension that takes me over not my earnings.
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