Source: HM Revenue & Customs | 07/08/19
There are many taxpayers that have reached the State Pension age and continue to work. It should be noted that the requirement to pay any employee or self-employed National Insurance Contributions (NICs) ceases once a taxpayer reaches the State Pension age, subject to the following clarification. Taxpayers remain liable to pay any NICs that were due to be paid on earnings before they reached the State Pension age. The self-employed will need to pay Class 4 NICs for the remainder of the tax year in which they reach State Pension age but will be exempt from the following year.
Certain occupations have a compulsory retirement age after which you are no longer allowed to work. An employer must have a good reason for setting a compulsory retirement age if there is an age limit set by law, or the job requires certain physical abilities. Apart from these special circumstances there is no official retirement age and taxpayers usually have the right to work beyond the State Retirement age. There is also no requirement to provide a date of birth when applying for a new job.
Taxpayers can usually claim their pension whilst they continue to work, as long as they have reached the State Pension age, or the age agreed with their pension provider (if drawing from a personal pension or workplace pension arrangement).
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Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.
Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest: