NI payments when not paying tax?

(3 Posts)
BagWoman Wed 27-Mar-13 12:20:51

'scuse me being dim here but need to know:

I am s/e but going into semi-retirement and my earnings in the future will be under the tax allowance I think.

Two questions- do I still have to complete a self assessment, and will i still be liable to NI deductions on my low earnings?

Also, will be pension ( teachers but very small ) be counted towards my personal allowance and potentially push me into the lower tax band?

MrAnchovy Wed 27-Mar-13 13:39:26

You will still need to complete a self assessment tax return; if your self employed earnings drop below £2,500pa you could ask to stop but as you will still have to give them the same information in the same timescales and it is much easier to do it online there is not much point.

You don't have to pay National Insurance once you reach state pension age or if your self employed earnings are below £5,725pa (2013/14) (the threshold for Class 2); the threshold for Class 4 NI is £7,755pa (2013/14).

However both your pension and your self employed earnings count towards your taxable income so if you were born after 5 April 1948 and this is over £9,440 in total (2013/14) you will pay tax at 20% on the excess.

BagWoman Wed 27-Mar-13 14:47:12

Thanks smile
It's worth my doing some sums then because on those figures, once my teachers' pension kicks in, in 2015, I could be losing it all in tax if I keep doing the small amount of work I do!

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