Early Retirement....First Week

Jack_Itin

O.k Jem, Will do, first thing Monday morning, thanks for the advice........one thing, I can't say how much I will be earning from the zero hours, it won't be a lot, but what do I tell them ?........?

jem16

Jack_Itin wrote: »

O.k Jem, Will do, first thing Monday morning, thanks for the advice

They are open just now and tomorrow. Early tomorrow would probably be better than now though.

........one thing, I can't say how much I will be earning from the zero hours, it won't be a lot, but what do I tell them ?........?

If you give them an accurate figure for your pension that would be the main thing. They can then just allocate what's left of your personal allowance to your job.

You should probably mention what you earned before you retired this tax year so they could take that into account too.

Jack_Itin

O.k Tomorrow it is......didn't realise they were open on a Saturday......thanks......Jack.

gadgetmind

They'll do anything to earn that double time!

peterg1965

I am also having a battle with tax codes. Just left public service after 31 years and my new job overlapped with my old one by 4 weeks. Add to that a pension that starts any day now, and my combined income being well over the HRT threshold and it gets complicated. Have already managed to shift my personal allowance to my new job, but it is on a 1 week/1 month basis, which i assume gets properly sorted when P45s are actioned. My pension needs to have a D0 (40% tax) code, but i can't do that until i receive the pension paperwork…. a pleasant nightmare!

jem16

peterg1965 wrote: »

but it is on a 1 week/1 month basis, which i assume gets properly sorted when P45s are actioned.

Not necessarily - it could stay like that for the rest of the tax year. Often HMRC issue a non-cumulative tax code to avoid a large underpayment being taken in one month. It would then be sorted out at the end of the tax year and any underpayment coded out in a later tax year.

You can ask for a cumulative tax code to be issued in the knowledge that you will have the underpayment taken in one month.

peterg1965

jem16 wrote: »

Not necessarily - it could stay like that for the rest of the tax year. Often HMRC issue a non-cumulative tax code to avoid a large underpayment being taken in one month. It would then be sorted out at the end of the tax year and any underpayment coded out in a later tax year.

You can ask for a cumulative tax code to be issued in the knowledge that you will have the underpayment taken in one month.

Once I have my pension details I am going to call HMRC again. I have actually just received my P45 from my last job so once that has been actioned by HR and received in HMRC it can, hopefully, all be sorted. My pension should have the D0 tax code and my employer should get a permanent 1486L tax code which is my personal allowance and additional reliefs. Then it will be happy days!

jem16

peterg1965 wrote: »

Once I have my pension details I am going to call HMRC again.

Always the best course of action.

Jack_Itin

Finally got through to HMRC this morning.......chap was quite helpful, and he suggested splitting my tax code.......I THINK that he said they would make my pension the main source of income, and that I would NOT pay any tax at all, either on pension or zero hours job......then I got cut off, now can't get connected again.......have I done enough to sort this ?...........Jack.

jem16

Jack_Itin wrote: »

have I done enough to sort this ?...........Jack.

Possibly but who knows for sure. If it's done you will get P2 Coding Notices with your new tax codes. However that could take a couple of weeks to actually arrive.

It's up to you whether you leave it and see. I would probably phone to check.