General Queries re Redundancy

A question about : General Queries re Redundancy

Hi,

I have worked for the same company since leaving school at 16 (41 years).

I have been made redundant and because Tax, N.I. etc. has always been taken care of for me I need some advice. The HMRC is always engaged and I have some simple questions.

I am considering doing some Freelance work as jobs in this area are few and far between.

I know I can earn up to Ј10,000 before paying tax and that is 20% no problem on that one.

What happens with National Insurance and how much should I put aside and what if I have a lean period and don't earn anything?

Pension. This is a big problem for me because I used to be in a 2/3rds finally salary scheme which the Company shut down in 1998. This is the killer it was with Equitable Life. I couldn't get it out for 10 years without them keeping 40%. I've got it out now but my pension will be very small as a result.

Any advice much appreciated.

Best answers:

• If you ring HMRC They will send you a Self Employed Pack. Ring early morning or late afternoon when they are less busy .
  Good luck
• The pension is taxable so will use up some/all of the personal allowance.