Re: Tax adjustment on retirement
Because you will be "retiring" before you are of state pensionable age Dog Lover I think I would make sure that the tax office are aware (in writing) in plenty of time before you finish work. Obviously the 20% tax will apply to your pension/s once you have reached your personal limit, but I would think they will need to know, in writing, what your pension income is likely to be, so they can re-code you correctly as quickly as possible. However, it may also be that they will take NI from your private pension/s. Even if you have enough years NI for a full o.a.p they do continue to take payments up to your normal o.a.p. retirement date and, although I am not sure, I think your pension/s could be considered as income for NI purposes.(Worth checking out). If you know what the amounts of your private pension/s will be I'd make sure to tell them, where, from and when the payments will be made. I'm not sure if you can opt out of the NI or not.Re: Tax adjustment on retirement
Thanks Rena for your comments. I have sent a letter to HMRC anyway and am seeing my IFA tomorrow. I don't think I will have NI deducted from pensions as I think you have to be employed for that or self employed when you pay it yourself direct to HMRC, and I have paid in for over 30 years so will definitely qualify for my full state pension when I'm 65. I just want to be sure I can manage OK before I jump in and hand in my notice next April.
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