If I have a pension, under 60, and continue to work, how is my tax liability calculated?

You are taxed on any income above your tax free allowance - it makes no difference whether it is earned income, investment income or pension.

One source of income will be treated as your "primary" source - up to you whic but HMRC usually puts an occupational pension as primary.

All other sources will be regarded as secondary.

You have your personal tax allowance (start point this year £8105) until you get Age Allowance on or after 65 (this may change).

Assume the pension is primary - if it is less than your personal allowance then left over allowance goes to the employment. If the pension os more than your allowance then it gets the alowance and employment will get code BR unless your total income puts you in the higher rate bracket.

The pension will be regarded as income, so your tax liability will be calculated on pension + other income.

My husbands Army pension was added on to his salary and he was taxed on the total sum.

UK