Additional Income?

degs88

So I'm on my pension (£20K pa) which uses my tax allowance. If I get a small job how does the tax work? Would I pay tax on all my second income?

Nick_C

Yes. And possibly NICs as well if you earn a lot and have not yet reached pensionable age.

Dazed_and_confused

Depends where you are resident for tax purposes and what other income you have.

But in the forthcoming 2019:20 tax year potentially the first £30k would be taxed at 20% and then 40% on anything above that.

If Scottish resident for tax purposes then you will probably be paying some 20% and some 21% tax and 40% would kick in at about £23-24k rather than £30k

degs88

Thanks for the replies.
UK, Midlands based.
Age 61.
I don't think I pay NI on my pension, but are you saying I would on earnings?
I wouldnt earn much, just might do something part time.

LHW99

If you were below the lower earnings limit for NI you wouldn't pay it.
On the other hand could it increase your SP if you did?
https://www.litrg.org.uk/tax-guides/employment/what-national-insurance-do-i-pay-employee

Nick_C

If you earn more than £162 a week (£168 from April 2019), you will pay 12% NICs on anything over £162.

And 20% Tax.

So £160 a week, you would pay £32 tax and no NICs.

£200 a week, you would pay £40 tax and £4.56 NI (12% of £38)

Use https://www.thesalarycalculator.co.uk/salary.php with a tax code of 0T for further calculations.

xylophone

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

Linton

From a tax point of view pensions are handled in exactly the same way as earned income so a pension plus a job is the same as having two jobs.

degs88

Ok,thanks all.