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Self Employed and drawing down down a pension - how does Tax and NI work? Confused!
Craighoy
Posts: 40 Forumite
Hi all - I will be 63 very soon and plan to take early retirement in the about two months time. I currently work as a technical sales advisor for an IT manufacturer and some of clients and business partners/ resellers have asked if I would be available for some consultancy on a per day basis.
I hadn’t planned to do this - but a couple of days per month may be nice - earning, keeping my hand in and social.
I will be drawing down on my pension to live off and paying the appropriate tax on this - trying to keep just under the 40% threshold at about £49k pa. gross.
If I start doing some consultancy I assume I’d set up as Self Employed. I estimate it would be earning around £10k per year.
How does the NI and tax work in this situation?
If I start doing some consultancy I assume I’d set up as Self Employed. I estimate it would be earning around £10k per year.
How does the NI and tax work in this situation?
Is this just classed as additional earnings?
Appreciate any advice
thx
thx
0
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