Tax

[coffeeboy]

I'm 69 and still working when I decide to retire do I have to tell the
Tax man or will my employer do it, thanks in advance.

[Zacs-Master]

This should help
http://www.hmrc.gov.uk/incometax/starting-work.htm#7

[grasscarp]

The tax man will stop taxing you on that salary source automatically.

[EDDIE51]

You should have been informed of your state pension before you got to 65.
Then you can decide to take the pension and continue working or defer the state pension to a later date. Not sure but I think you can only defer the state pension for 5 years so if you are not getting it you will have to take it next year at 70. If you take it or defer it is up to you but you do need advice on what is the best option in your situation. I assume you have got the exemption from paying National insurance sorted , as you do not have to pay that after 65. You do not need to tell the tax man they will just tax you or not according to your income , pension, work or a combination of the 2.
I would just add that in most cases it is more beneficial to take your full state pension as soon as possible even if you pay tax on it by still working.
The amount you gain by deferring your state pension is less than you lose in tax on it when working.

[dzug2]

Your employer will not as such tell the taxman you have retired - but will tell him you have stopped working for him and issue you with a P45. The tax code on it may well be no longer appropriate

If you want to get your tax affairs right I'd be proactive in telling the taxman so that you don't pay too much or too little tax or miss out on a refund

[factor-fiction]

Will you have any income in retirement other than state pension?

[factor-fiction]

It's definitely worth sending your p45 to the taxman. You may get some tax back but may have to wait until the end of the tax year

[coffeeboy]

I already take my state pension, I have since when I reached 65
The only other income I will get is another pension from a previous employer

[EDDIE51]

^^ Then you are already doing what you need to, when you decide to stop work and get your P45 send it to the tax office with a statement saying you are not going to work again and your only income will be your pensions.
That way the tax office can adjust your tax code so you don't pay too much tax and you may even get a rebate.

[boxtops]

I phoned up my tax office when I was due to retire, so they could review all my potential income and get a reasonable view on my tax position.

You can defer taking a state pension for 10 years, Eddie - it increases by 10.4% (at present) for every year you defer it.

[dzug2]

..The amount you gain by deferring your state pension is less than you lose in tax on it when working.

But you don't lose ANY tax on it if you are not taking it.

[EDDIE51]

Boxtops thanks for that thought it was until 70
Deferring it till 75 would mean a lot of people would die before they got any of it. 75 is I think about the current life expectancy for a man born in the 1940s-50s

[EDDIE51]

^^ Thinking about this , a good idea would be to commit a crime that gets you 10 years in jail at 65 then after living at the taxpayers expense for ten years claim a double pension on release. :-)
Only joking but would that work in practice?

[tamborine]

No you dont inform HMRC coz if theres no pay, no tax is due. As the first £10k is tax free you must be on an excellent salary for a coffeeboy?