Pension, work and national insurance question

Tarama

Hello 

I am sure there is a simple answer to my question.  I have just retired and am now receiving my USS pension of £30,000.  My tax free personal allowance is taken from my pension.  I am now in the fortunate position of taking on some more university based work - my earnings from this will be low - under £10,000 pa initially - although this could increase to £15k or £20k.   

So my question is I will obviously be taxed at BR on this university work - so how does HMRC deal with this?  Do I make sure I inform my new employer to tax me on the BR?  Then my next question is about National Insurance (NI).  I do not pay NI on my pension, so are my NI contributions based solely on this university work and my pension income is not included in this calculation?

Hope this makes sense?       

Many thanks Tarama   

Grumpy_chap

Are you over state retirement age?
If so, no NI payable.
https://www.gov.uk/tax-national-insurance-after-state-pension-age

molerat

When you start work you fill in a new starter checklist ticking statement C and they will automatically use BR.  Once your start has been reported HMRC will review your tax codes as necessary.

Choose this statement if: • you have another job and/or • you’re in receipt of a State, Works or Private Pension

If under SP age NI will be calculated on your employment income only, pension income is not subject to NI deductions.

Tarama

Grumpy_chap said:

Are you over state retirement age?
If so, no NI payable.
https://www.gov.uk/tax-national-insurance-after-state-pension-age

Hi Grumpy Chap 

no I am 62 - so a while to go.

Thanks 

Tarama

molerat said:

When you start work you fill in a new starter checklist ticking statement C and they will automatically use BR.  Once your start has been reported HMRC will review your tax codes as necessary.

Choose this statement if: • you have another job and/or • you’re in receipt of a State, Works or Private Pension

If under SP age NI will be calculated on your employment income only, pension income is not subject to NI deductions.

Hi Molerat

I am under SP age so NI is only calculated on my employment income only.  Pension income is not taken into account.

That really addresses my question. Thanks

Tarama