Working after you've retired

Discussion in 'Off-Topic Discussion' started by Jungle Jane, Mar 18, 2014.

Page 1 of 2
  1. Jungle Jane

    Jungle Jane Starved Of Technicolor

    Joined:
    Dec 12, 2010
    Messages:
    2,136
    Gender:
    Female
    Occupation:
    Local Nutcase
    Location:
    South Essex
    Ratings:
    +3,398
    (This isn't for me btw)

    My dad has just retired and is now receiving a pension but still wants to continue with his very small garden maintenance business he's been running for the past few years. Does anyone know if there there are any tax issues with this?
     
    Jungle Jane, Mar 18, 2014
    #1 Quote in Conversation
  2. lost_in_france

    lost_in_france Total Gardener

    Joined:
    May 28, 2013
    Messages:
    1,640
    Gender:
    Female
    Location:
    Vieil-Hesdin
    Ratings:
    +3,138
    He'll have to pay tax on any income over £10k (as of 1st April). That includes his pension income. I took (very) early retirement and have a pension, which is taxed at source. He'll need to let the tax office know and get a self assessment form for any additional income.
     
    • Agree Agree x 2
      lost_in_france, Mar 18, 2014
      #2 Quote in Conversation
    • clueless1

      clueless1 member... yep, that's what I am:)

      Joined:
      Jan 8, 2008
      Messages:
      17,778
      Gender:
      Male
      Location:
      Here
      Ratings:
      +19,601
      Or he could give the business to you, then work for you on a voluntary basis, and you thank him for his help by treating him to the odd pint or meal out etc.
       
      • Agree Agree x 1
        clueless1, Mar 18, 2014
        #3 Quote in Conversation
      • JWK

        JWK Gardener Staff Member

        Joined:
        Jun 3, 2008
        Messages:
        34,045
        Gender:
        Male
        Location:
        Surrey
        Ratings:
        +54,084
        I took early retirement so get a pension, then found a full time job, it took a couple of years before HMRC eventually got my tax codes right. So as Eve says he needs to contact the tax office.

        Another issue with working past 65 is you start to lose your extra retirement allowance, by £1 for every £2 you earn above £27,000 (for 2014/15) until it becomes the same as people below 65 (this is the so called 'Granny Tax'). That obviously depends on your Dad's personal situation, but I have know a couple of people who decided to stop working completely when they hit 65 because of this.
         
        JWK, Mar 18, 2014
        #4 Quote in Conversation
      • shiney

        shiney President, Grumpy Old Men's Club Staff Member

        Joined:
        Jul 3, 2006
        Messages:
        67,254
        Gender:
        Male
        Occupation:
        Retired - Last Century!!!
        Location:
        Herts/Essex border. Zone 8b
        Ratings:
        +134,073
        It also depends on how small you call small. If it's only a very small income then, although it would be taxable, a small amount of 'cash in pocket' wouldn't be noticeable. I know a lot of retired people that do odd jobs for cash.

        Was he declaring the income from that business before retirement? Was he shown to be self-employed with it and filling in Self-Assessment returns?
         
        shiney, Mar 18, 2014
        #5 Quote in Conversation
      • Jungle Jane

        Jungle Jane Starved Of Technicolor

        Joined:
        Dec 12, 2010
        Messages:
        2,136
        Gender:
        Female
        Occupation:
        Local Nutcase
        Location:
        South Essex
        Ratings:
        +3,398
        No to all of the above. My parents don't have much grasp on things like this and so didn't bother. My dad I think earned less than 4k last year. I know that's below the tax threshold but I wondered if the pension would complicate things.

        My mum is saying idiotic things like that my dad shouldn't get anymore business cards printed in case the tax man finds out. Which I don't think is helping the situation at all. :mad:
         
        Jungle Jane, Mar 18, 2014
        #6 Quote in Conversation
      • shiney

        shiney President, Grumpy Old Men's Club Staff Member

        Joined:
        Jul 3, 2006
        Messages:
        67,254
        Gender:
        Male
        Occupation:
        Retired - Last Century!!!
        Location:
        Herts/Essex border. Zone 8b
        Ratings:
        +134,073
        If he was working elsewhere (employed) then what he was earning in his private work was taxable. Being below the threshold doesn't apply as the threshold allowance would have been taken up in his employment PAYE figures.

        So, he wasn't declaring it before (when he should have been) and I don't see any reason for things to be different now.

        Having business cards printed, in this sort of situation, is a risk (and has always been a risk) but just a minimal one. If that is all the turnover he's had in the past he wasn't exactly spreading them around like mad.

        I guess that all he really wants to do is to have a bit of pocket money. Carrying on as he has been doing should be sufficient. If he's thinking of making it into a full time business then he needs to think carefully about it.
         
        shiney, Mar 18, 2014
        #7 Quote in Conversation
      • Jungle Jane

        Jungle Jane Starved Of Technicolor

        Joined:
        Dec 12, 2010
        Messages:
        2,136
        Gender:
        Female
        Occupation:
        Local Nutcase
        Location:
        South Essex
        Ratings:
        +3,398
        He wasn't employed by anyone before he was retired and went into the garden work reluctantly. (I used to do the same work he is doing now and he used to say it wasn't a proper job). I don't think my dad intends to expand it at all. But my mum is a worrier and thinks that the tax man will be on their backs because of it.

        Its all cash in hand and is quickly spent so no paper trail at all, apart from the business cards of course...
         
        Jungle Jane, Mar 18, 2014
        #8 Quote in Conversation
      • shiney

        shiney President, Grumpy Old Men's Club Staff Member

        Joined:
        Jul 3, 2006
        Messages:
        67,254
        Gender:
        Male
        Occupation:
        Retired - Last Century!!!
        Location:
        Herts/Essex border. Zone 8b
        Ratings:
        +134,073
        So where was he earning his money if he wasn't employed and only earned £4,000 on gardening? :scratch:
         
        shiney, Mar 18, 2014
        #9 Quote in Conversation
      • robinbarker

        robinbarker Gardener

        Joined:
        Feb 24, 2014
        Messages:
        139
        Gender:
        Male
        Occupation:
        Retired ( at last )
        Location:
        Newcastle England
        Ratings:
        +181
        Retire chance would be a fine thing :old:
         
        robinbarker, Mar 18, 2014
        #10 Quote in Conversation
      • lost_in_france

        lost_in_france Total Gardener

        Joined:
        May 28, 2013
        Messages:
        1,640
        Gender:
        Female
        Location:
        Vieil-Hesdin
        Ratings:
        +3,138
        Well, if he doesn't want to expand, ditch the business cards. I'm sure any extra work could be got by word of mouth should he want or need it. He's only helping out friends after all....
         
        • Like Like x 1
          lost_in_france, Mar 18, 2014
          #11 Quote in Conversation
        • Jungle Jane

          Jungle Jane Starved Of Technicolor

          Joined:
          Dec 12, 2010
          Messages:
          2,136
          Gender:
          Female
          Occupation:
          Local Nutcase
          Location:
          South Essex
          Ratings:
          +3,398
          On gardening only. It was probably a lot less than that but it's just a figure I plucked out of the air.
           
          Jungle Jane, Mar 19, 2014
          #12 Quote in Conversation
        • shiney

          shiney President, Grumpy Old Men's Club Staff Member

          Joined:
          Jul 3, 2006
          Messages:
          67,254
          Gender:
          Male
          Occupation:
          Retired - Last Century!!!
          Location:
          Herts/Essex border. Zone 8b
          Ratings:
          +134,073
          How did he survive on that?

          Eve's suggestion is a good one. :blue thumb: He shouldn't have any worries.

          Is he an experienced gardener and does he know the difference between weeds and plants? This is a serious question as we have tried out many gardeners that don't seem to know the difference! If he does, and he doesn't live far from you (therefore not too far from me) I might be able to find him some work. We occasionally get asked if we know a gardener.
           
          shiney, Mar 19, 2014
          #13 Quote in Conversation
        • JWK

          JWK Gardener Staff Member

          Joined:
          Jun 3, 2008
          Messages:
          34,045
          Gender:
          Male
          Location:
          Surrey
          Ratings:
          +54,084
          By following our Scrungee?


          :)
           
          • Agree Agree x 1
            JWK, Mar 19, 2014
            #14 Quote in Conversation
          • Jungle Jane

            Jungle Jane Starved Of Technicolor

            Joined:
            Dec 12, 2010
            Messages:
            2,136
            Gender:
            Female
            Occupation:
            Local Nutcase
            Location:
            South Essex
            Ratings:
            +3,398
            Well my parents paid off their mortgage before he was made unemployed and they have been living off my mum's income and my sister paying upkeep. I could make it even worse by telling you how little he charged an hour including traveling expenses.

            My dad isn't a great gardener tbh. He will cut lawns and if someone says I want "all of that" cleared he will do it. I've tried to teach him but he isn't interested even when I tell him he could earn more per hour as a result. He lives in Maldon so I think that still will be a bit far. But apprieate the offer of help nevertheless :)
             
            Jungle Jane, Mar 19, 2014
            #15 Quote in Conversation
          Page 1 of 2
          Loading...
          Similar Threads - Working you've retired
          1. DaveMK

            Leaf blower/mulcher not working - advice?

            DaveMK, Nov 12, 2025, in forum: Tools And Equipment
            Replies:
            3
            Views:
            410
            CarolineL
            Nov 14, 2025
          2. Sheal

            'Buttons' not working

            Sheal, Oct 28, 2020, in forum: Site Feedback/Bugs
            Replies:
            22
            Views:
            3,916
            Sheal
            Oct 30, 2020
          3. pete

            screen not working on my laptop

            pete, Aug 25, 2019, in forum: Computer Corner
            Replies:
            35
            Views:
            4,282
            Fat Controller
            Sep 4, 2019
          4. Sandy Ground

            Working Horse

            Sandy Ground, Jan 26, 2018, in forum: Off-Topic Discussion
            Replies:
            5
            Views:
            769
            silu
            Jan 26, 2018
          5. clueless1

            Some awesome real life working robots

            clueless1, Feb 13, 2017, in forum: Off-Topic Discussion
            Replies:
            12
            Views:
            1,026
            clueless1
            Feb 19, 2017

          Share This Page

          1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
            By continuing to use this site, you are consenting to our use of cookies.
            Accept Learn More...
            Dismiss Notice