Retired with pensions and deciding to go back to work

XzavierWalnut

I am 61 and have been retired for 2 years claiming 2 small final salary schemes. (£4.5K approximate). One in the NHS and one is private. I have no other income other than savings and investments, and do not pay any income tax.
Currently my tax code is split between the 2 pensions and my wife has the marriage allowance amount.
I am thinking of returning to the NHS on a part time basis, with a salary of £13K approximately.
My question is, what happens with my tax code and do I need to inform HMRC, so I do not pay emergency tax?
I started filling in a self assessment form this year due to selling online.

Dazed_and_C0nfused

XzavierWalnut said:

I am 61 and have been retired for 2 years claiming 2 small final salary schemes. (£4.5K approximate). One in the NHS and one is private. I have no other income other than savings and investments, and do not pay any income tax.
Currently my tax code is split between the 2 pensions and my wife has the marriage allowance amount.
I am thinking of returning to the NHS on a part time basis, with a salary of £13K approximately.
My question is, what happens with my tax code and do I need to inform HMRC, so I do not pay emergency tax?
I started filling in a self assessment form this year due to selling online.

You don't need to do anything other than make sure you provide your new employer (not HMRC) with a new starter declaration.

This will ensure you avoid the emergency tax code (1257L) and start on BR (20% tax).

Once the first payment has been reported by your new employer HMRC will review your tax codes and are likely to allocate some of your insured tax code allowances to your new job.

So you might have tax code of say 681T at the new job.  

Where you can help things is once this new tax code has been issued is to ensure HMRC's estimate of what you will get from all 3 sources of PAYE income is as accurate as possible.  You can check the figures they have used and update them on your personal tax account.  Ultimately no one knows as well as you how much each pension will be and what you will earn in the current tax year at this new job.

Having said that all of the above is irrelevant really as it all comes out in the wash via your Self Assessment return.  PAYE is only ever provisional, it's your tax return that finalises things.

XzavierWalnut

Dazed_and_C0nfused said:

XzavierWalnut said:

I am 61 and have been retired for 2 years claiming 2 small final salary schemes. (£4.5K approximate). One in the NHS and one is private. I have no other income other than savings and investments, and do not pay any income tax.
Currently my tax code is split between the 2 pensions and my wife has the marriage allowance amount.
I am thinking of returning to the NHS on a part time basis, with a salary of £13K approximately.
My question is, what happens with my tax code and do I need to inform HMRC, so I do not pay emergency tax?
I started filling in a self assessment form this year due to selling online.

You don't need to do anything other than make sure you provide your new employer (not HMRC) with a new starter declaration.

This will ensure you avoid the emergency tax code (1257L) and start on BR (20% tax).

Once the first payment has been reported by your new employer HMRC will review your tax codes and are likely to allocate some of your insured tax code allowances to your new job.

So you might have tax code of say 681T at the new job.  

Where you can help things is once this new tax code has been issued is to ensure HMRC's estimate of what you will get from all 3 sources of PAYE income is as accurate as possible.  You can check the figures they have used and update them on your personal tax account.  Ultimately no one knows as well as you how much each pension will be and what you will earn in the current tax year at this new job.

Having said that all of the above is irrelevant really as it all comes out in the wash via your Self Assessment return.  PAYE is only ever provisional, it's your tax return that finalises things.

Thank you for the information,