working any collecting pension

[keenanthomps]

need infor, has anyone stayed on at work and also collected state pension ? at the moment it has not altered my tax. but people tellme new tax i will have to pay a lot of tax, so i should cut down my working hours. dont know what to do any answers please thankyou

[factor-fiction]

Yes pension counts as income. Unless you are a higher rate tax payer you'll pay extra tax equivalent to 20% of your state pension. Even if you reduce your hours slightly you'll still pay tax on the pension unless your earnings fall below the tax start point of around �6000 pa (HMRC site will give you the figure)

[barry1010]

You are allowed to earn an amount without paying income tax. If your pension uses up all that amount you pay tax at the standard rate on every penny you earn. If you are 65 -74 you can earn �9490 tax free.
That is �182.50 per week.
If your state pension is �100 per week you can earn �82.50 before paying income tax.
However much you earn above that you will still keep 80p in every pound (20% tax) so it is up to you. Of course if you earn over �37400 per year you will pay higher rate tax on amounts above that.

[barking-mad]

The up-side is you won't be paying National Insurance any longer so you'll benefit in that regard. Your employer will continue to make the employers contribution of National Insurance on your earnings though.

[keenanthomps]

thakyou for your answers, i think i will just wait till the new tax year starts then look at my choices again . so thanks

[factor-fiction]

Are you over 65? If not (because you' re female and received pension at age 60) you will just have the normal tax free allowance- as Barry says, the higher tax allowance only apply at ages over 65.

[keenanthomps]

i am sixty, i still pay a morgage until next july , so i had to think about payments thats why i stayed on at work but its hard when you just do not know whats it the best way of doing things, i am so glad that i found this web site because the help i have been given is great thankyou for taking the time to answer me