Recently retired on state pension but taking up part time work: PAYE or Self-Assessment

TerryTubbie

I retired last month on the full state pension 'plus' (£244 weekly). I have been asked if I would like to work for a company on ad-hoc hours (no more than 16 per week). Because I'm over the full state pension of  £230.25 and have savings, I'll have to pay tax somehow in the future regardless.

My partner still works if that has any effect on above.

What is the best way of sorting my tax out if I take up this offer of work. PAYE or Self Assessment ? Any and all advice would be welcome as I don't have a clue about these things.

Dazed_and_C0nfused

TerryTubbie said:

I retired last month on the full state pension 'plus' (£244 weekly). I have been asked if I would like to work for a company on ad-hoc hours (no more than 16 per week). Because I'm over the full state pension of  £230.25 and have savings, I'll have to pay tax somehow in the future regardless.

My partner still works if that has any effect on above.

What is the best way of sorting my tax out if I take up this offer of work. PAYE or Self Assessment ? Any and all advice would be welcome as I don't have a clue about these things.

Why wouldn't a part time job be on PAYE?

Or is there more to this than you have said?

molerat

As long as the employer is on the straight and pays you through the PAYE system then you need do nothing as the system will sort it all out.  The only thing you may need to be on top of is ensuring your estimated incomes are correct in your on line tax account.

TerryTubbie

molerat said:

As long as the employer is on the straight and pays you through the PAYE system then you need do nothing as the system will sort it all out.  The only thing you may need to be on top of is ensuring your estimated incomes are correct in your on line tax account.

The employer is a well respected organisation. They have a few retired people work for them, so asked if I wanted PAYE or SA, but I don't understand how self-assessment would work, hence my post.

So PAYE would be the most simplest route for me. I was trying to avoid getting tied up in forms and potentially paying to much tax. By online account , do you mean the HMRC app?

EnPointe

TerryTubbie said:

I retired last month on the full state pension 'plus' (£244 weekly). I have been asked if I would like to work for a company on ad-hoc hours (no more than 16 per week). Because I'm over the full state pension of  £230.25 and have savings, I'll have to pay tax somehow in the future regardless.

My partner still works if that has any effect on above.

What is the best way of sorting my tax out if I take up this offer of work. PAYE or Self Assessment ? Any and all advice would be welcome as I don't have a clue about these things.

 for simplicities sake take the work  PAYE with a BR tax code , then that has squared away that tax liability , and  tax  on state pension , investments or private/ occupational pension ( that isn;t taxed at sourced as many private / occupational schemes do have the ability to do that ) would still  need to be addressed  by yourself ...

molerat

By online account , do you mean the HMRC app?

Yes.  It will list all your taxable income streams with the estimated annual income.  With multiple streams it can be important to ensure they show a fairly accurate estimate so that allowances can be allocated correctly. 

If your tax affairs are straightforward going PAYE is usually the simplest.

TerryTubbie

Thanks all for the advice.  PAYE is it !