Top News

Brits have been reminded that they can continue to work while claiming their pension. HM Revenue and Customs (HMRC) shared advice on how the system works, claiming it's "pretty straightforward".

In the UK, if you were born on or before 5 April 1960, your State Pension age is 66. However, if you were born after this date, the age is gradually rising, starting at 67.

The amount of money you get will depend on your age as well as how many years you have paid National Insurance. Separate to this, you may also have a workplace or private pension, which are also possible to claim while you work.

If you're considering working while claiming your pension, HMRC shared some advice on social media platform X. It said: "Thinking about working while drawing your pension?

"Our Q&A is here to help you understand your options, from working alongside a pension to changes in National Insurance. Find out more at Tax Confident and feel confident about tax in retirement."

This was accompanied by a video answering some common questions about working while claiming. It said: "Can you keep working while getting a pension?

"Yes, you can work while receiving your State Pension, a private or workplace pension, or both. Many people choose to do this and the tax rules are straightforward.

"Do you still pay National Insurance when you work? No. You stop paying National Insurance once you reach State Pension age even if you keep working.

"Employed people stop automatically. Self-employed people stop from the next tax year."

More information on how it works is found on the GOV.UK website. Here HMRC continued: "Many people choose to carry on working while receiving the State Pension, a private pension, or both. And the good news is that the tax rules are pretty straightforward."

If you're employed, HMRC won't charge you National Insurance on any money you earn once you reach State Pension age. Your employer will stop taking National Insurance from your wages once they have proof of your age.

HMRC said this could include your passport, birth certificate, or State Pension award letter. You can also ask HMRC to send them a letter saying you've reached State Pension age.

If you're self-employed, you'll stop paying all National Insurance contributions from the start of the tax year (April 6) after you reach State Pension age. HMRC said: "Remember to put your date of birth on your tax return so we can make sure you stop paying."

However, while National Insurance will stop once you reach State Pension age, Income Tax doesn't. You'll still pay this on your total yearly income.

This could come from lots of different places, such as:

• Your wages
• If you're self-employed
• State Pension
• Workplace or private pensions
• Interest you get from savings
• Investments
• Rented property
  

Most people have something called a tax-free Personal Allowance. It's the amount of money you can get each year before you start paying tax. The current standard tax-free Personal Allowance is £12,570 a year.

If your total income from work and pensions is below this amount, you won't pay any Income Tax. For more information, visit GOV.UK here.