Side Hustle

longster70

Not entirely sure where this thread needs to be located, but any advice appreciated.

I’m 56 years old and retired earlier this year with a pension income just below the personal tax allowance level. Not a huge amount, but enough to survive!

I’ve now been presented with an opportunity to provide a service to a local charity on an ongoing basis. I’d do this as a sole trader with the intention of limiting any annual income below the new limit of £3000 as announced in last weeks budget. Is this reasonable or have I misunderstood this change? Also when does it take effect?

Any advice appreciated.

Andy_L

Starts next tax year, ie April 27

Woodstok2000

It'll depend exactly what you are doing, but the guidance is here:

https://taxhelpforhustles.campaign.gov.uk/guide-to-delivery-driving-tax-rules-and-other-service-hustles/

Marcon

I’m 56 years old and retired earlier this year with a pension income just below the personal tax allowance level. Not a huge amount, but enough to survive!

I’ve now been presented with an opportunity to provide a service to a local charity on an ongoing basis. I’d do this as a sole trader with the intention of limiting any annual income below the new limit of £3000 as announced in last weeks budget.

Is there a reason (other than the obvious dislike of paying tax!) why you intend to limit your income from the charity to ensure you stay within the tax-free limit? Even if you pay basic rate tax, you're still getting 80% of your earnings. Put some of them into a pension and you'll get basic rate relief added by the provider…

Also (and you've probably thought of this, but just in case not) - have you checked your state pension forecast? https://www.gov.uk/check-state-pension

The much-quoted '35 years for full state pension' is wrong, and given how early you've retired, it's worth checking, particularly as you can pay the princely sum of £3.65 a week by way of voluntary self-employed contributions to build up your state pension entitlement if you haven't yet built up an entitlement to the full amount. https://www.gov.uk/national-insurance/how-much-you-pay