If I retire and continue working, who would pay my tax on it?

G

GeJoan

New Member
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6
I will be retiring next year. I will claim my pension (because it would be decreasing with each year) and hope to continue working with my current company. Will my company pay all my taxes or should I do it myself?
TIA
 
GeJoan said:
I will claim my pension (because it would be decreasing with each year)
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What exactly do you mean by this?
What sort of pension are you referring to?
GeJoan said:
Will my company pay all my taxes or should I do it myself?
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Your employer's payroll will deal with taxes etc. on wages.
If your pension is an occupational or private one then the pension provider will probably pay it through their payroll system and taxes etc. will be dealt with there.
However you may need to check your Revenue myAccount (or ROS if self-assessed) account to make sure that you're not over or under paying tax etc. and that all credits and standard rate band etc. are correctly applied to your cumulative earnings.
 
I will retire next year after 22 years working here, I won't get full pension but still it will be better than after retiring few years later when it would be all counted proportionally.

It's just only Contributory pension. I thought that if it is known amount monthly, so all taxes could be paid by my employer. But it is probably better to pay it myself.
 
It should be allowed for in your tax credits by reducing them usually, so I'd imagine you notify Revenue of the amount of the pension and they adjust the credits accordingly and then payroll deducts whatever is due. Think that is the way it usually works!
 
Tax on your Contributory Pension is all done automatically. Dept of Social Protection notify Revenue. Revenue then reduce your tax credits and bands to account for the tax liability.

You should notify your employer when your COAP starts. They will then change your Prsi from class A to class J.

This will reduce your Prsi rate to zero.
 
GeJoan said:
It's just only Contributory pension
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You mean the state contributory old age pension?

State Pension (Contributory) pre 2025

The State Pension (Contributory), previously called the old age pension, is paid to people aged 66 and over, who have worked and paid enough social insurance contributions. This page is for people who were born before 1 January 1959 and did not defer claiming their State Pension (Contributory).
www.citizensinformation.ie
What do you mean by this?
GeJoan said:
because it would be decreasing with each year
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ClubMan said:
What do you mean by this?
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Her partial COAP is probably being reduced each year due to the phasing out of the Yearly Average calculation method.

If a few extra years of contributions will not get her into a higher average band, her pension amount might be reduced by deferring it.

This is another complication caused by pension deferral.
 
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They stop when you claim the COAP. So age 66. If you defer the COAP, or don't qualify for it, at age 66, you will continue to pay Prsi up to maximum age 70.
 
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