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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I retired in March 2015 and now receive a state pension of

Resolved Question:

I retired in March 2015 and now receive a state pension of £699.74 and a private pension of £84.64 per month. I pay no income tax on either. The firm I used to work for has invited me back to work part-time. How will this effect my pensions and if I earn to much I will have to pay income tax. Will this be just on what I earn or will I lose some of my pension or both. Thank you ***** ***** ( Age 67 )
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Can you tell what your date of birth is please.
Customer: replied 2 years ago.
5-10-1948
Expert:  TonyTax replied 2 years ago.
Thanks.
Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.
Hi again. Your personal allowance is £10,600 for 2015/16 so if your total income is no more than £10,600 in 2015/16, you will pay no income taxat all. If you receive your state pension monthly, your total income excluding part-time earnings will be £9,412.56 ((£699.74) x 12 + (£84.64 x 12)). You will have unused allowances of £1,188. If your part-time earning exceed £1,188 between now and 5 April 2016, you will pay income tax at 20% on the excess. The tax code on your part-time earnings should be £118P. If you receive your state pension 4 weekly, your total income excluding part-time earnings will be £10,112.30 ((£699.74) x 13 + (£84.64 x 12)). You will have unused allowances of £488. If your part-time earning exceed £488 between now and 5 April 2016, you will pay income tax at 20% on the excess. The tax code on your part-time earnings should be £48P. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 2 years ago.
Hi again. Your personal allowance is £10,600 for 2015/16 so if your total income is no more than £10,600 in 2015/16, you will pay no income taxat all. If you receive your state pension monthly, your total income excluding part-time earnings will be £9,412.56 ((£699.74) x 12 + (£84.64 x 12)). You will have unused allowances of £1,188. If your part-time earning exceed £1,188 between now and 5 April 2016, you will pay income tax at 20% on the excess. The tax code on your part-time earnings should be £118P. If you receive your state pension 4 weekly, your total income excluding part-time earnings will be £10,112.30 ((£699.74) x 13 + (£84.64 x 12)). You will have unused allowances of £488. If your part-time earning exceed £488 between now and 5 April 2016, you will pay income tax at 20% on the excess. The tax code on your part-time earnings should be £48P. I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
Sorry to be thick Tony, is it just my part-time work that will be taxed or my pension as well, or both. Thank you. Chris.
Expert:  TonyTax replied 2 years ago.
If you pay any tax at all, it will be on your part-time income.
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