At the start of the new tax year I will be semi-retiring. I will reduce my workdays to 3 a week and collect my company pension (aged 60).
This will actually leave me with a larger basic salary than I was earning for 5 days a week.
![Very Happy :D](./images/smilies/icon_e_biggrin.gif)
My question is how will this be taxed? Will I need to start completing an annual tax return? As I was a simple PAYE I haven't completed one for over 20 years. I pay tax at 40% but this is significantly reduced by my tax code for my SIPP contributions - which will continue as before.
My assumption is that as my income will be split between 2 sources then neither will be paying the 40% until HMRC apply a correction?
I had also assumed that my "main" tax code would apply to my normal employment (the larger source of income)?
Many thanks in advance for any help/suggestions.