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Scenario
Retired - pensions less than 40% tax rate but more than tax free amount. Aware don't pay NI on pensions.
Started some consultancy work - £1000 gross a week for 13 weeks.
Am I liable to pay NI on consultancy earnings - the starting point for NI earnings is about £155 a week I believe (say £8000 a year) so clearly I will get more than this from consultancy income - but do I have to pay NI on all of that income or just the excess of the £8000 (or whatever the precise amount is) in other words my pension income (not NI able) does not count towards the calculation of NI threshold.
Any informed help appreciated.
TIA
Retired - pensions less than 40% tax rate but more than tax free amount. Aware don't pay NI on pensions.
Started some consultancy work - £1000 gross a week for 13 weeks.
Am I liable to pay NI on consultancy earnings - the starting point for NI earnings is about £155 a week I believe (say £8000 a year) so clearly I will get more than this from consultancy income - but do I have to pay NI on all of that income or just the excess of the £8000 (or whatever the precise amount is) in other words my pension income (not NI able) does not count towards the calculation of NI threshold.
Any informed help appreciated.
TIA
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Replies: 18
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I presume that you are aware that you don't pay NI after you reach state pension age.
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https://www.gov.uk/national-insurance/how-much-you-pay
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Assuming you are talking employed rather than self-employed.
If over 65 then NI is not applicable. If under 65 you must pay class1 at12% between £ 155 and £ 815 per week and at 2% for the remainder. If self-employed you pay class2 at £ 2.80 pw and class4 on anything over £ 8,060 per year. Hope this helps. |
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I gather that this consultancy doesn't relate to the wages dept.
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I have not reached state pension age. They are occupational pensions.
Thanks for replies. |
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ditchbert - thanks but do I still pay at 12% even though I'll only be earning for 13 weeks and not 52?
I suppose that is the essence of my question. |
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Yes
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The 12% is the employee rate when you are employed. If you are doing this on a self employed basis you pay the flat rate class 2 of 2.80 per week and class 4s of 9% .
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Parispike. You still have not said if you are doing this as employed or self-employed.
Assuming it's on an employed basis then you pay your 12% irrespective of how many weeks you work. |
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Via an umbrella company... so I'm not sure!
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How old are you?
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ignore that..question has been answered.
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If you are employed through an umbrella company then you will pay Class 1 NI
at 12% and then 2% as I have already detailed in a previous post. |
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Feckin joke btw that you still have to pay tax on your pension.
I'm the same and whilst it's obviously a lot less now it really rankles me. I worked for 40+ years paying tax all that time. Surely in retirement I should be exempt. Mind you if the tax dodgers at one end of the scale and the scroungers* at the other end did their bit I probably wouldn't need to. (* Before anyone gets their nicks in a twist I know not everybody on benefits are scroungers but the few that are really annoys me every bit as much as the tax dodging rich) |
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I think you'll find the tax/ money lost on the manipulating rich , outweigh the money ' scrounged ' by the poor benefit ' cheats' tens of thousand fold ! No comparison.
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But I do agree that it grieves to pay Income tax on pensions that one has worked 40 years for.
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I don't doubt that but we expect the really rich to f*ck us.
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We might expect it, but accept it ( as a god given right ? ) NEVER !
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