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Paul Lewis presents Money Box on Radio 4. To read more of his advice, see radiotimesmoney.com
Request your FREE guide to find out how to get the most from your pension MAXIMISE YOUR RETIREMENT INCOME DON'T HIDE A BIT ON THE SIDE
If you make money from a side hustle, know when to tell HMRC, says Paul Lewis.
Deciding how to access your pension savings can be confusing and it’s not always clear which option is best for you. If you’re over 55 with a pension pot of more than £30,000, Age Partnership Wealth Management are here to help you get the most out of your pension income. How we can help Annuity rates have risen over the last four years*. For many people, this means a very good chance of achieving a higher retirement income now compared to the end of 2021. You could have access to a wide range of retirement options with the support you need to make the right choice. Whether you know what you want or need advice on your options, Age Partnership Wealth Management's friendly Specialists and Financial Planners can talk you through your pension options such as; Lifetime Annuity - A guaranteed pension income for life. Fixed-term Annuity – Security now, flexibility later. Drawdown – Flexible access to your pension savings. Please note that investments may fall as well as rise and you may not get back what you put in. Cash withdrawal – Find out how much tax you might pay by withdrawing your pension savings as a lump sum. Advice or guidance – which is right for me? Age Partnership Wealth Management offer both options and their Pensions and Retirement team will help you decide on the most appropriate service for you. Call their friendly team on Freephone 0800 302 9037 to find out more. Real Customer Story – Mr Duck “The help and advice given on my pension was exceptional, I could not knock them down from 5 stars. My adviser took the time to assess all my requirements and future needs and gave me 2 options, a higher risk and a lower risk. I listened to what she advised and made my decision accordingly. This was all done over the phone at planned times.” An initial consultation with a financial planner is free and without obligation, you’ll only pay a fee if you choose to go ahead with the recommended solution presented to you, and they’ll let you know what it will be in advance. If you proceed with the non-advised service, Age Partnership Wealth Management will be paid a commission from the provider you have selected and this cost will be factored in to your plan. If you receive advice and choose to proceed with a recommended solution, they charge an advice fee of 2.25% of your pension savings after tax-free cash has been taken, subject to a minimum of £1,795. For more information, call 0800 302 9037 to request your free guide or visit radiotimes.com/RT_Pensions. *sharingpensions.co.uk pension annuity rates chart, based on their benchmark example for £100,000 fund, aged 65, single life, level and no guaranteed period. Age Partnership Wealth Management Limited is authorised and regulated by the Financial Conduct Authority, FCA registered number 670493. Company registered in England and Wales No. 9073664. VAT registration number 162 9355 92. Registered address: 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB
2026. At the moment, that means you will be sent a self-assessment tax return, which you must complete. Although the Government recently announced an increase in that reporting threshold to £3,000, no date for the change has been fixed. Confusingly, tax will still be due on the profits you make on takings between £1,000 and £3,000, but you will pay it through what HMRC says will be a simpler online process. Details are awaited. Tax is only due if you are trading – buying or making things to sell, or selling services. There is no tax on selling things you bought for your own use – when you clear out the wardrobe or attic, for example. However, online sites that host these sales now have to tell HMRC if you sell 30 or more items in a calendar year, or your takings are more than €2,000 (currently about £1,665). That means you might get a letter from HMRC when you owe nothing. So it’s important to be clear about your rights!
Do you boost your pension or wages by earning a bit on the side? Nowadays it’s called a side hustle – using your skills and/or energy to make a spot of extra money, perhaps to help with those April bills or save up for a holiday. You might do bookkeeping, take in laundry, make pots or paint pictures to sell, walk dogs, or buy and sell things online through platforms like eBay, Vinted or Etsy. But beware – it’s not just customers who will be looking at your social media. The taxman will as well. ‘If your takings are £1,000 or less a year, you don’t pay tax’ Very small side hustles are covered by what is called the trading allowance, currently £1,000. If your takings are £1,000 or less in the tax year (6 April to the next 5 April) then you need not tell HM Revenue & Customs or pay tax. Remember, this is not the profit you are allowed; it is the amount of your takings or turnover. If you take more than that, then you have a duty to tell HMRC – do it by 5 October in the tax year after your business started. So if you started on 6 April this year, you do not have to tell HMRC until 5 October
QUESTIONS? Send any questions to Paul.Lewis@radiotimes.com . I cannot answer you personally, but I will reflect them in this column.
RadioTimes June 2025
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