Pension or work?

lesconfused

Hello. Please can anyone help with this
Husband is due to retire january next year. His firm has offered him the chance to stay working which he would like to do but at less hours. His take home pay working 6 days a week is usually about £340. He has a private pension of £106 a month. His state pension forecast is £155.83. I am a housewife and do not earn money.
How many hours could he work before being stung with tax. He would like to carry on working but only if feasible.
All help welcome please. Thank You

CLAPTON

how old will he be in January

atush

What rate of pay per hour/day would he get for this part time work ( 6 days a week at 340 is close to minumum wage?)

tescobabe69

He will pay tax immediately, on every penny, as his state pension uses up his tax free amount.
More pertinent would be, how much does he/do you spend ? And what are your pension arrangements (assuming you are a similar age.)

lesconfused

Answer to questions.
He will be 65 in january
Pay is £9.65 an hour.
I am 57 so will have to wait for my pension
Although at 60 i will get a small pension ie £60 a month for my previous employment
Rent is £87.91 a week.
Council tax £98 a month
Electric/gas is between £20-30 a week
Water £25 a month

shop-to-drop

If he wants to work I think he should he will pay tax on all his pay but of course this is on top of his two pension amounts he will no longer pay NI though.

atush

It might be more tax effective if you worked part time instead. You would build up more NI to get a better SP, and you could use up your personal allowance. It is quite a while til you will be getting any State pension due.

But it sounds as if you don't have enough to retire on comfortably so maybe it would be best if he worked if you can't. If you have enough to live on with his pension, then put every penny he saves into a savings acct (Cash Isa).

CLAPTON

in the tax year he is 65 his tax allowance will increase to 9490; you may want to check this has happened as HMRC sometimes forget to do this
what tax codes are on his wages and his private pension?

so that means he can earn 9490 per annum before tax
so you need to know
his gross yearly private pension
his state pension per year

he will then pay tax at 20% on anything over 9490 per year although he pays no NI once he's 65 ; make sure you check his payslips once in jan to make sure the payroll people have not accidentally charged him

tescobabe69

Am I missing something, where are your wages going ?

shop-to-drop

tescobabe69 wrote: »

Am I missing something, where are your wages going ?

She is a housewife, earns no money.

tescobabe69

shop-to-drop wrote: »

She is a housewife, earns no money.

Crikey what does she do all day ?

Any how fire up your tinternet box and look at https://www.turn2us.entitledto.co.uk/calcresults.aspx?sid=13&cid=158ce273-fff6-46af-9e1d-3e7d49446e57

Assuming no savings it looks like,
Housing benefit of the full amount of rent
Pension credit of £38/week
Council tax benefit of £23/week
Or a total of £150 a week without going to work, welcome to the wonderful world of benefit Britain, the old man wont believe it when you show him this.