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Markman

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does it REALLY matter if you retire mid year, at XMAS or end of Tax Year?

If you have no savings and are not in the high income bracket does it really (I don't mean you could save a few hundred quid) matter (i.e. would you lose thousands)?

 

(I appreciate the paucity if information presented here - :laugh:)

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If you retire early in the tax year, you'll likely pay no tax as your income will not exceed your personal  allowance (you get the full annual allowance even if retire early). But it's not really a saving as you pay less tax by earning less. If you can, I'd go for the time of year which suits you. Personally, I'd go for spring  - retire into summer than a wintery January. 

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19 minutes ago, WarksRobin said:

I would recommend seeking expert financial advice, rather than relying on a football forum.

Ah - but I think that is my point - if your finances are such that you need expert advice you possibly have money to worry about - if you don't have much money does it really matter. I have never earned enough to think I need an expert in financial advice (unless it is free) but a generic bit of feedback might be helpful. My research over the last 2 days indicated end March but then said if you are fed up and want to leave - leave it would matter that much so although I could hang on - I think I might go and risk losing one of my islands

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You will be taxed on your total earnings across the tax year in which you retire.  You will pay the appropriate tax for the amount you earn.  If you earn more, you will pay more tax.  The main difference that your date of retirement will make is to your income, not to your tax.  If it was me (and it was a couple of years ago) I’d just retire when you want to.

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On 15/02/2022 at 15:26, The Dolman Pragmatist said:

You will be taxed on your total earnings across the tax year in which you retire.  You will pay the appropriate tax for the amount you earn.  If you earn more, you will pay more tax.  The main difference that your date of retirement will make is to your income, not to your tax.  If it was me (and it was a couple of years ago) I’d just retire when you want to.

Or, like me after being made redundant and thinking about doing some consultancy for 15 months, you suddenly realise that you have actually retired and are loving it. :)

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