Best time of year to retire (UK!)

ffacoffipawb

cfw1994 wrote: »

Just on this point.....makes sense to me, but how much do you need to earn for that?
Not easy to find online!

About £8,200. Say £9,000 just to be on the safe side.

It's the lower earnings threshold I think.

GibbsRule_No3.

I’m still very confused by the NI payment, from March next year I won’t pay NI because I can take my SP but this year I am paying 11 months NI but none of them are adding to my after 2016 SP COPE. So if there is an “amount” that you can work/pay to get an NI given to you why does it not count towards the post 2016 year? Obviously I will continue to pay tax after I get the SP but don’t retire from my job, so why stop the NI? Better still why did the NI not stop from April this year? If the NI goes towards other things than SP, as it does why does it not continue to go towards those things after SP?

ffacoffipawb

GibbsRule_No3. wrote: »

I’m still very confused by the NI payment, from March next year I won’t pay NI because I can take my SP but this year I am paying 11 months NI but none of them are adding to my after 2016 SP COPE. So if there is an “amount” that you can work/pay to get an NI given to you why does it not count towards the post 2016 year? Obviously I will continue to pay tax after I get the SP but don’t retire from my job, so why stop the NI? Better still why did the NI not stop from April this year? If the NI goes towards other things than SP, as it does why does it not continue to go towards those things after SP?

The tax year that you reach SPA doesnt count towards state pension even though you are still paying NI.

GibbsRule_No3.

But why? If you earn above the limit for the year and you pay NI why does it count for other reasons? That is what I’d like explaining. It is just weird to me. What is so different about the year before SP? Or does it take the government department that long to work things out?

ffacoffipawb

GibbsRule_No3. wrote: »

But why? If you earn above the limit for the year and you pay NI why does it count for other reasons? That is what I’d like explaining. It is just weird to me. What is so different about the year before SP? Or does it take the government department that long to work things out?

The tax year you attain SPA is not a complete tax year in about 99.7% of cases.

You have to draw the line somewhere. Technology we have now wasnt available about 80 years ago when the laws were defined.

GibbsRule_No3.

ffacoffipawb wrote: »

The tax year you attain SPA is not a complete tax year in about 99.7% of cases.

You have to draw the line somewhere. Technology we have now wasnt available about 80 years ago when the laws were defined.

Does it need a different technology to work out a part year that is not your SPA year? I also just thought that as a female I have at least taken the advantage of three years extra COPE under the new 2016 rule but a man born the same year, month as me who also gets their SP next March has lost out more if they had COPE in their working life. Roughly £240-50 a year. In my case I would probably have paid that in tax but still strange that it can be worked out for some but not others.

Linton

GibbsRule_No3. wrote: »

Does it need a different technology to work out a part year that is not your SPA year? I also just thought that as a female I have at least taken the advantage of three years extra COPE under the new 2016 rule but a man born the same year, month as me who also gets their SP next March has lost out more if they had COPE in their working life. Roughly £240-50 a year. In my case I would probably have paid that in tax but still strange that it can be worked out for some but not others.

My guess that the reason for NI in the year you are due to take your SP not being included is that total NI is worked out at the end of the tax year - with mutiple employments for example it may not be completely straightforward. So if your SP starts before the end of the current tax year the year's NI wont have been calculated so cannot be included.


If you stop working during a year before your SPA there is no issue. The NI can be calculated and is included.

Triumph13

I would also imagine there is a fairness argument in terms of if lower paid people and people on relevant benefits can't count it as it isn't a full year, is it entirely fair that some people get to count it based on how much they earn and when their birthday falls?

Triumph13

cfw1994 wrote: »

Just on this point.....makes sense to me, but how much do you need to earn for that?
Not easy to find online!

You need to earn the LEL of £6,136 (19/20), but any earnings over the UEL of £4,167 a month don't count so you can't do it in a single month no matter how much you earn.

cfw1994

Triumph13 wrote: »

You need to earn the LEL of £6,136 (19/20), but any earnings over the UEL of £4,167 a month don't count so you can't do it in a single month no matter how much you earn.

So 2 months covering it would do?
Thx!