Paye

[twilightflyer]

Hope I am in the right area!

I am retired, have a forces pension which is taxed,have also a retirement pension which takes me over the threshold for claiming benefits, now my question is, is if I take on a part time job of 16 hours per week will I have to pay tax on this, any help please.

[twilightflyer]

Now moved to the personal finance section

[Tilly2]

I have also retired and have an occupational pension but not a state pension yet. I have a part time job, 15 hours a week and I pay tax at basic rate and also national insurance.

[boxtops]

Tilly, I stopped paying NI when I reached 60 (which was then the retirement age). If you are of state pensionable age, you shouldn't still be paying NI, you should ask for an exemption certificate which you give to your employer.

[Tilly2]

Boxy, I am not at state pension age yet

I won't get my state pension until November 2014. I did ring the DWP to check and was told that I would have to keep paying even though I had paid all my contributions during my full time working life. They did say that I should get an increased pension, when I get it.

[dzug2]

If your forces pension is taxed, then your income obviously exceeds the personal allowance

Therefore you would pay tax on a part time job

Whether you pay NI as well or not depends on whether you are also over state retirement age

[Buenchico]

Assuming that you're under 75, you're allowed to have income of up to £9440 per year without paying tax on it. Thereafter, you pay 20% tax on all of your income (unless, of course, your total income takes you into a higher tax bracket).

So you'll pay 20% tax on the earnings from your part-time job (with a tax code of 'BR').

National Insurance has been mentioned. You don't pay NI after reaching the State Pension age (as long as you've submitted a 'certificate of age exception'). Further (unless there's a particularly high hourly rate of pay), the amount of NI payable would be very low, or probably nil, anyway. (There's no NI on earnings of less than £149 per week from any one employer).

[boxtops]

Interesting about the extra pension, tilly, did they elaborate? My colleague has to wait until she's 63 but is only expecting the basic pension at that date. I deferred taking mine (as you get 10.4% extra added for each year you defer) but I wasn't aware that pensions increase (any more than at present with inflationary rises) if you have to wait longer for them.

[twilightflyer]

I hasten to add that I get paid 'cash in hand' for the part time job. Do I still have to declare this? as I do not know at this point in time if I am going to stay in the job. Thanks for any info.