Working after you've retired

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

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  1. Jungle Jane

    Jungle Jane Starved Of Technicolor

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    (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
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  2. lost_in_france

    lost_in_france Total Gardener

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    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.
     
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      lost_in_france, Mar 18, 2014
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    • clueless1

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

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      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.
       
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        clueless1, Mar 18, 2014
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      • JWK

        JWK Gardener Staff Member

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        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
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      • shiney

        shiney President, Grumpy Old Men's Club Staff Member

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        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
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      • Jungle Jane

        Jungle Jane Starved Of Technicolor

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        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
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      • shiney

        shiney President, Grumpy Old Men's Club Staff Member

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        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
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      • Jungle Jane

        Jungle Jane Starved Of Technicolor

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        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
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      • shiney

        shiney President, Grumpy Old Men's Club Staff Member

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        So where was he earning his money if he wasn't employed and only earned £4,000 on gardening? :scratch:
         
        shiney, Mar 18, 2014
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      • robinbarker

        robinbarker Gardener

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        Retire chance would be a fine thing :old:
         
        robinbarker, Mar 18, 2014
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      • lost_in_france

        lost_in_france Total Gardener

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        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....
         
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          lost_in_france, Mar 18, 2014
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        • Jungle Jane

          Jungle Jane Starved Of Technicolor

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          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
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        • shiney

          shiney President, Grumpy Old Men's Club Staff Member

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          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
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        • JWK

          JWK Gardener Staff Member

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          By following our Scrungee?


          :)
           
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            JWK, Mar 19, 2014
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          • Jungle Jane

            Jungle Jane Starved Of Technicolor

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            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
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