In this article, the Low Income Tax Reform Group (LITRG) highlight some of the tax issues that you might need to bear in mind if you had previously stopped working but are now thinking of ‘un-retiring’.

How am I taxed if I return to work after retirement?

As a retiree, you might have different sources of income. For example, you might receive a state pension and other private or occupational pensions, which you will pay tax on, as well as investment income.

If you go back to work, your earnings will be added to these other sources of income and your income tax calculation is based on your total income for the tax year.