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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
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I'm 64 and will retire early: In coming tax year I'll only

Customer Question

I'm 64 and will retire early:
In coming tax year I'll only have salary in april, then leave the job and live from income from abroad.
Question: impact on NIC; employer will withhold in April but do I have to pay for rest of the year ?
Thank you and regards.
Peter
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Peter, I'm Keith and happy to help you with your question.
You are definitely in a Dad's Army 'Don't Panic' situation.
You do not have to stamp your card, to use an old expression, at your age. You will receive automatic credits until you reach your State Retirement Pension age.
The following information sheet from Rights for Seniors gives fuller details:
http://www.rights4seniors.net/content/over-60s
I do hope I have been able to set your mind at rest on this matter. I got about 4 years of these!
Customer: replied 2 years ago.

Hello Keith,

Thanks for the information and the link but how about the income from savings from abroad, about 12 k; It'll be taxable for sure but no NIC ?

Expert:  bigduckontax replied 2 years ago.
Certainly not, savings income is outside the NI envelope and always has been. You will be liable for Income tax on those moneys, but you do have your Personal Allowance, 10K this tax year, 10.6K next tax year to offset this income. Depending from whence it comes you may be entitled to tax credits for any tax deducted in another country pursuant to one of the hundreds of Double Taxation Treaties which the UK has world wide which preclude the same income stream being taxed in both jurisdictions.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.