Reducind tax liabilities on contract work after retirement

olddude69

I am possibly going back to my old job after nearly ten years of retirement to do contract work for a couple of years. As I already receive over £30k from my pensions and obviously pay tax, how do I reduce my tax liability as I would be receiving well over the next tax threshold of £50k with this new income? Any help would be most welcome. Thanks.

Sam_666

Contribute to pension, you got £10k allowance.
I dont understand your second part of Q. If you run ltd, you control payments, so just keep them below threshold.

Albermarle

Your question would have been better asked in this forum.

Cutting tax — MoneySavingExpert Forum

If you do repost, then the details of the pensions you are receiving would be useful to know.

sheramber

What age are you?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81981446#Comment_81981446

On what basis are you saying pension allowance is £10k - nothing in the post says taken DC pension that would trigger MPAA. Could be DB for all we know.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81981642#Comment_81981642

I did not suggest that the MPAA would be triggered, that was the previous poster.In fact that was why I asked the question I did.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81981745#Comment_81981745

Apologies, I quoted the wrong person

Grumpy_chap

Are the current pensions DB or DC?

Does the OP receive SP?

On what basis will the OP undertake the work? Sole-Trader or Ltd Co or Umbrella?

Diaz09

Since the others have pointed you to the right forum, I'll add that if this is genuine contract work (not disguised employment), you'll have more tax planning options as a sole trader or through a limited company. Consider timing when you invoice and get paid - you might be able to spread income across tax years to manage your marginal rates better. Also worth checking if any of your pension income qualifies for splitting across tax years.