Income strategy/tax calculation
LucyJP
Member
Hi all,
Very new here so hope you can help!
I have a client who is already retired and in receipt of the following income:
£11,500 p/a from state pension
£8,368 p/a from dividend income
He also wants to start drawing income of £66,000 net p/a from his personal pension.
Does anyone have any easy calculation or theory they would use to work all of this out? i.e. how much gross pension income would be needed to target the £66k net, and how much tax would be paid in full, UFPLS vs flexi-access etc.
My brain is fried with too many TYE cases!
Thanks in advance 
Comments
You could put the info in our tax relief modeller and keep increasing pension income until you get the amount you want.
Need to remember you will then push the dividends into higher rate tax.
And factor in the tax free cash - trial and error!
If you are only taking enough to get the 66k then UFPLS or phased doesn't matter unless you are wanting all the tax free amount up front and then you will get a difference but I doubt that is material.
And depends on income frequency.
This may not work quite how you want it to, but the reverse tax calculator is always useful (you can change the tax code to account for the state pension).
https:////uktaxcalculators.co.uk/tax-calculators/personal-tax-calculators/reverse-tax-calculator/