Work,Tax & Pension

turbomeister_2

I am working fulltime, 59 years old, am taking my private pension, but am taxed to the limit. Anyone know how to maximise my income by balancing work hours to tax ratio?

chrisbur

turbomeister wrote: »

I am working fulltime, 59 years old, am taking my private pension, but am taxed to the limit. Anyone know how to maximise my income by balancing work hours to tax ratio?

Not really sure what your question is.
To maximise your income you need as mutch money as possible coming in, true the more money that comes in the more tax you will pay but the more tax you pay the richer you will be. When you pay tax at 40% you still get 59% of the money, the other 1% goes in national insurance.

turbomeister_2

What I mean is "How can I reduce my working hours to lower my tax liability on my pension and job?"

seven-day-weekend

If you don't want to pay any tax, you will have to lower your hours so that your salary and pension together come to less than your tax allowance. Anything over your personal allowance will be taxed. Your pension counts as income just as the money you earn from working does.

I'm not altogether sure what you are asking?

chrisbur

turbomeister wrote: »

What I mean is "How can I reduce my working hours to lower my tax liability on my pension and job?"

If you reduce your income then you will pay less tax, and you will get less money. Life is a balance, if you want more time to yourself and you can work less hours then doing so will give you that time but at the cost of a lower income.
I gave up my office job a few years ago and became self employed doing something I enjoy. I am now earning less than half what I used to earn; but now enjoy my work, have no travelling, and work when I want to. I am lucky to be able to do this; but it does mean accepting that money is not the most important thing in life.