How much can a pensioner earn?

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point&push | 20:48 Tue 18th Oct 2005 | Business & Finance
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My aunt, aged 62 has been offered a job by a local reputable firm as a part time tour guide. Her only income is the state pension and she qualifies for Pension Credit, a local authority rent rebate and also council tax rebate.

She approached the local benefits agency to enquire how much she's allowed to earn before she no longer qualifies for the benefits but was only advised to make a claim once she takes the job.

As she doesn't want to risk losing the benefits and having to pay out in excess of �60pw rent (not including council tax) she's in a dilemma. She's got a couple of weeks to decide whether or not to take the job so can anyone help and advise how much she's allowed to earn and still qualify for pension credit, rent & council tax rebate.


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I can't answer your question, but if your aunt does fall into an income tax bracket, tell her to make sure that she submits a form P161 to her local tax office. This is important, because as a person of retirement age she should only pay income tax at about 14 percent as opposed to 22 percent. Lots of retired people are losing out on this one. The tax office just assumes that you are not entitled to the lower rate if you don't complete the form, but many people are not aware of the existence of it.

There's a Pension Credit Calulator here. Yir mum should ring her local coucil about the Housing Benefit and Council Tax Benefit. Many Councils can do a "Better Off Calculation" where they can feed in the details and work out if you'll be (you've guessed it) "better off"

Benefits Office Advice Line or CAB should be able to tell her exactly how much she can earn and how many hours she can do without in affecting her benefits. I know that I can earn up to �66 per week before it affects my housing benefit, but I don't know if it's the same for older people. Make sure that even if she earns a very small amount it is declared though, as all amounts have to be declared - or you end up in trouble!

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