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Tax Codes when taking NRA 60 & Still working...

10 Oct 2019, 15:23

Does anybody know how it works for tax codes when you take one of your pensions but continue to work.

Do you get a different tax code for your pension ?

Does your current tax code change?

Is there anything you actually need to do ?

Many thanks in advance for any help....

Tax Codes when taking NRA 60 & Still working...

10 Oct 2019, 17:30

I have no personal experience of this and I'm sure someone will come along and correct me if I'm wrong. But you will normally have your main income, which will be your RM employment, to which the personal tax allowance of £12,500(plus uniform cleaning allowance) will be applied, exactly as now.

Your second income from you pension will be given a BR tax code, which means all of it will be taxed at 20%. There's no NIC's to pay on pension income.

There shouldn't really be anything you have to do, other than to keep an eye on the figures to make sure they're correct.

There's lots of info on this online, which will go into more detail!

Tax Codes when taking NRA 60 & Still working...

10 Oct 2019, 18:38

Thanks Robert....again..

Tax Codes when taking NRA 60 & Still working...

11 Oct 2019, 08:24

Hawkey99 wrote:Does anybody know how it works for tax codes when you take one of your pensions but continue to work.

Do you get a different tax code for your pension ?

Does your current tax code change?

Is there anything you actually need to do ?

Many thanks in advance for any help....


Just to add what Robert has stated:

I did take all of my various pensions @ 60 (both RM pensions and another deferred occupational pension from previous employment) but continued to work for RM for a month or two after my 60th.

Assuming that you earn enough to pay income tax, all of your RM pay will have your tax codes allocated to it at the start of the tax year and will continue until you tell HMRC otherwise and any additional income (pension or otherwise) will be taxed at BR rate (20%). The time to contact HMRC (I assume you have a tax account set up) is when you have received your final pay and when amounts due to you have been finalised. The phrase I used with HMRC being the revenue was 'predictable and stable'. It was not until several months into my pension that I was able to state this due to final adjustments to pensions etc. Tell them that you need them to allocate your remaining taxable allowances over your various revenue streams for the remainder of the tax year. HMRC did this more efficiently than I thought they would have done - BTW contact by phone was fast for me especially when they open in the morning. I did the same in April 2019 so as to get my allowances allocated correctly over my pension payments so as not to pay any income tax for this year(2019/2020) from month 1. Phoning gets things moving quickly from my experience and the online account just confirms what changes have taken place. Don't rely though on HMRC to get things right for your circumstances without making contact with them and have all your figures to hand when you talk to them!

I am currently waiting for HMRC to reconcile my tax account for 2018/2019 tax year due by the end of October as I should receive a small rebate from them! So that has been the only fly in the ointment in my dealings with them over the last 16 months of retirement.

Tax Codes when taking NRA 60 & Still working...

11 Oct 2019, 18:40

I am not receiving a RM pension but do receive another pension.
As Robert T says your tax free amount is £12,500 plus flat rate job expenses £120 gives you a total of 12620

(Edited) In my case HMRC put a tax free amount (2019/20) of £11817 for Royal Mail & £803 for the other pension - tax codes 1181L & 80T accordingly.
Last edited by rogersh on 11 Oct 2019, 20:56, edited 1 time in total.

Tax Codes when taking NRA 60 & Still working...

11 Oct 2019, 19:08

Very interesting......

Thanks all.

Tax Codes when taking NRA 60 & Still working...

13 Nov 2019, 09:15

BeamishStout wrote:I am currently waiting for HMRC to reconcile my tax account for 2018/2019 tax year due by the end of October as I should receive a small rebate from them! So that has been the only fly in the ointment in my dealings with them over the last 16 months of retirement.


Well true to their word the P800 tax reconciliation form arrived a couple of weeks ago and I was due for a small tax rebate which has been gratefully received direct to my bank account having elected to do this via my online HMRC government gateway portal. For folk with 2+ pensions coming in each year, having all your ducks lined up at the start of a new tax year makes for a reasonably stress-free situation and, more importantly, having access to your online tax account can make financial arrangements easier to deal with. :thumbup

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