Tax on pensions.

[Drawweight]

I’ve got my state pension and a couple of small private pensions.

Before I was just under the tax threshold but now of course due to the rise in the state pension I now find myself paying tax.

One pension is monthly and the other is 4 weekly. The monthly one is just in and there’s a few quid less than normal, presumably for tax. When the 4 weekly one comes in in a couple of weeks can I assume that that will also be reduced slightly because of tax now?

Do the various pension schemes work off a database or liase with the tax people? How do they know how much each is paying?

Simplistic questions I know but I’m curious.

[Drawweight]

Another quick question, slightly more complicated.

Whilst I was working my wife transferred her allowance to me ( this will be £1260 for 24/25) as her wage was under the tax threshold.

Looking at our tax code notices this year including both our private pensions Mine is Personal Allowance + transfer of allowance - state pension gives me a tax free amount of £2345.

However my wife's is Personal allowance - transfer of allowance - state pension gives her a minus figure of -£175.

She has a private pension as well as me so we're both paying tax although she seems to be paying a lot more than me.

Now normally I'm assuming it wouldn't matter if both figures were a positive how the allowance was done as it would balance out, but does the fact that it's a minus figure mean she's paying more tax than necessary.

In a nutshell, if I stopped taking her allowance would it save any money as a couple or is it just shifting the total amount