taxed 41 percent on pension while still working after age of 65

T

thebourke

Registered User
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My father recently turned 65.He is still working.
He will still be working on a year by year basis provided he passes a medical.
He was informed recently that he can collect a pension from the Bord of Works.
He worked there for about 9 years.
At first he was getting about 40euro per week on this pension.
However,now the pension is being taxed at 41 percent...so he is basically getting half ot it now.
should he be taxed on his pension?
What about if he stops the pension now and doesn't collect it till he retires from work?
Will he still be able to backdate the pension to when he finishes work?
Would he be taxed on it then?
 
His pension is taxable as if it was income. If he's exempt from Income Tax, he won't be paying any tax on his pension. If his earned income puts him into the 41% bracket, he will pay 41% on the pension also. Like T McGibney says, he needs to sort out his tax.

If he's already started drawing his pension, he can't now ask for it to be stopped. You can defer drawing a pension, but not after you've already chosen to draw it.
 
If he's paying more tax than he should, he can claim back the overpayment after the end of the year.
Depending on his gross income, marital status, he could be tax exempt, or get marginal tax relief.
 
When he adds his pension to his weekly wages he is over the 32,800e tax band...when he rang the office enquiring about his pension they mentioned something about a preserved pension..what is this?if he had known he would be taxed at 41% on the pension he wouldn't have drawn his pension till he stopped working fulltime.
 
A preserved pension is where a member decides to defer drawing their pension until a later date. But in this instance, if he has already started drawing his pension, I don't think that decision can be reversed.
 
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