Assistant Over 60

[bubblejack]

I have an assistant who will soon be getting a state pension. The joint ammount of her wage together with pension will make her liable for income tax. Whose responsibility will it be to deduct the tax.

[korkycat]

She should contact Tax office and they will give her appropriate code. If she is only getting state pension then you as her employer will have to deduct her tax and pay her NI if she earns above the threshold. She will not be liable but you as employer will need to pay that part. I would have had this problem but have defferred my state pension until I stop work. (Will get increased rate or a lump sum so you don't lose out) Hope that helps.

korkycat

[Inge]

tax code will be allocated to state pension,which uses the tax free allowance, so you will have to deduct tax as normal PAYE- check with tax office as to the correct tax code to apply, it will be different to the usual one.

 

Inge

[JacquieL]

An interesting question. The short answer is that you, as the employer, will have to deduct the tax. Your employee should be contacting the Inland Revenue to sort it out if they haven't all ready. She may also be exempt from National Insurance Contributions if she has enough for a full pension, and she can get an exemption certificate which has to be given to the employer. It is really up to her to sort all this out, not you. Once sorted then you will be given a tax code to apply to her pay.

If, as korkycat says, if she defers her pension, then things will remain as they are now. I'm sure she will be sent forms by IR to fill in about all this.

 

http://www.direct.gov.uk/en/MoneyTaxAndBen...ent/DG_10014681

[Guest]

Hi, I think you will find that your 60 yer old person may well be taxed on earnings above the present threshold, but they will not need to pay NIC stoppages from their birthday, but she /he can delay claiming their pension, as others have said contact the local Tax office for guidance.