New question nhs scheme

PoGee

I've had to delay retirement due to issues with sppa. While waiting for the ombudsman to review matters, I'll take partial retirement starting in June of next year. I've reduced hours by 33% (edit - reducing by 50% not 33%).

Forms with manager and HR.

Still to send NHS:ret form. Am I correct in thinking I can take all my 1995 portion and leave the 2015 untouched?

My partial retirement income from employment and pension will mean I'll pay tax on my pension. I do a self assessment each year due to rental income. I don't want the tax owed on the pension to be taken from my wages - can I ask HMRC to just send me a bill as they usually do (for my rental income)?

kaMelo

Yes, you can partially retire, put the 1995 pension into payment and leave the 2015 pension untouched. I believe any tax due from the pension payment will taken as PAYE from the pension payment rather than your wages.

GrumpyDil

The tax on your pension should be taken automatically so no question of asking for a bill.

To add more detail, if your employment uses all of your taxable allowance then all of your pension will be taxable. If you are a 40% tax payer they will adjust the code on your pension to take account of being a higher rate taxpayer.

PoGee

Thanks for replies. I'm a base rate tax payer. My 3 sources of income (employment, pension, rental income) should be between £38 and £40k. Working 2 days a week. Our health-board doesn't have a pension officer, which doesn't help.

Marcon

My partial retirement income from employment and pension will mean I'll pay tax on my pension. I do a self assessment each year due to rental income. I don't want the tax owed on the pension to be taken from my wages

You'll pay the same tax overall during the year. Both your wages and your pension are taxed under PAYE (ie with deductions for tax each month), so it won't actually make much, if any, difference to the amount of cash you receive in your bank account each month on an ongoing basis - a point I raise because it was entirely missed by this poster if you read their opening post:

https://forums.moneysavingexpert.com/discussion/6682573/hmrc-treatment-of-income-from-employment-and-private-pension

I wondered if you too had read the same unhelpful 'guidance' they seem to have found?

PoGee

I looked at the post you suggested Marcin but don't really understand it. As long as it (tax) gets deducted and I don't need to do myself, that's simpler.