state/private pension question

annhan

hi all

i have a relative who has been retired for almost a year on a state pension and a privtae pension, they are getting quite bored and have been offerd a PT job at 20 hours per week. Now the money being paid is just above nat min wage so not as good as the pension, are you allowed to legally claim pensions and work pt or do you have to give up the state pension?

thank you

ann

xylophone

are you allowed to legally claim pensions and work pt

Yes. Make sure he covers the tax position with HMRC.
He should make sure that he is not paying NI on the salary from the new job. https://www.gov.uk/tax-national-insurance-after-state-pension-age/making-sure-youve-stopped-paying-national-insurance
http://www.hmrc.gov.uk/incometax/basics.htm

Alter_ego

You can even work full time and claim pensions! You just have to pay income tax on everything above your personal allowance.

annhan

Thank you for the reply. Will the pension amount be effected or will it continue as per normal? The PT role is a self employed role so informing HMRC will be straight forward.

Alter_ego

State pension will continue to be paid in full. Others may be taxed as needed.

annhan

ok thank you

jem16

Alter_ego wrote: »

State pension will continue to be paid in full. Others may be taxed as needed.

The state pension will continue to be paid gross but it is taxable and a deduction would be made on the tax code to take this into account.

xylophone

and have been offerd a PT job

The PT role is a

self employed

role

http://www.hmrc.gov.uk/employment-status/ would be worth checking out.

zagfles

Note that pension credit will be affected, if he gets it.