| They give with one hand and take back with the other. 13:10 - Feb 15 with 1211 views | Pinewoodblue |
Yesterday I receive correspondence from DWP of increase in Pension from April.
Today received confirmation of tax code for next financial year reminding me they are clawing 20% of it back by reducing my tax code. |  |
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| They give with one hand and take back with the other. on 14:20 - Feb 15 with 1121 views | GeoffSentence |
You don't expect to pay tax? |  |
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| They give with one hand and take back with the other. on 14:26 - Feb 15 with 1107 views | DJR |
It may feel that way, but presumably you owe some tax for this year, or are expected to owe tax for this year.
Of course, if you don't know what it's for, you could query it, but you'll probably be on the phone for a while unless you phone first thing. [Post edited 15 Feb 2023 14:27]
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| They give with one hand and take back with the other. on 14:33 - Feb 15 with 1087 views | Vaughan8 |
Eh? Its because its given gross and clearly your earnings are over the personal allowance. Doesn't this happen every year? |  | | |
| They give with one hand and take back with the other. on 14:51 - Feb 15 with 1056 views | usm |
The state pension has always been taxable income |  |
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| They give with one hand and take back with the other. on 15:00 - Feb 15 with 1026 views | Pinewoodblue |
| They give with one hand and take back with the other. on 14:33 - Feb 15 by Vaughan8 |
Eh? Its because its given gross and clearly your earnings are over the personal allowance. Doesn't this happen every year? |
Expect tax allowance to increase but Sunak put a stop to that. | |
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| They give with one hand and take back with the other. on 15:09 - Feb 15 with 989 views | Pinewoodblue |
| They give with one hand and take back with the other. on 14:51 - Feb 15 by usm |
The state pension has always been taxable income |
That is why it isn't regarded, by most, as a benefit.
My personal view is that State pension should not be taxed. We should also combine Income tax & National Insurance and collect one tax, not two, which presumably would lead to a cost saving.
This would result in a lot more pensioners not paying tax. Those pensioner fortunate enough to earn over £20,000 a year would pay a higher rate in the £1 than they do now. | |
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| They give with one hand and take back with the other. on 15:56 - Feb 15 with 933 views | Keno |
| They give with one hand and take back with the other. on 15:09 - Feb 15 by Pinewoodblue |
That is why it isn't regarded, by most, as a benefit.
My personal view is that State pension should not be taxed. We should also combine Income tax & National Insurance and collect one tax, not two, which presumably would lead to a cost saving.
This would result in a lot more pensioners not paying tax. Those pensioner fortunate enough to earn over £20,000 a year would pay a higher rate in the £1 than they do now. |
for most people their state pension isnt taxed, just the rest of their income is
the pedantic wording should be the state pension shouldnt be taxable |  |
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| They give with one hand and take back with the other. on 16:06 - Feb 15 with 915 views | HARRY10 |
| They give with one hand and take back with the other. on 15:56 - Feb 15 by Keno |
for most people their state pension isnt taxed, just the rest of their income is
the pedantic wording should be the state pension shouldnt be taxable |
It is counted as part of your taxable income, rather than standing alone with you having the same tax allowance as non pensioners
Something that is currently being looked at to try to cope with the dire shortage of labour.
Something the thickos never quite grasped. If you remove over a half million furriners' there will be a shortage.
Still not all is lost. Companies are simply shifting production abroad. | | | |
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| They give with one hand and take back with the other. on 16:52 - Feb 15 with 859 views | DJR |
| They give with one hand and take back with the other. on 15:09 - Feb 15 by Pinewoodblue |
That is why it isn't regarded, by most, as a benefit.
My personal view is that State pension should not be taxed. We should also combine Income tax & National Insurance and collect one tax, not two, which presumably would lead to a cost saving.
This would result in a lot more pensioners not paying tax. Those pensioner fortunate enough to earn over £20,000 a year would pay a higher rate in the £1 than they do now. |
Speaking as someone in receipt of a work pension, but not yet the State Pension, I don't think combining tax and NI would be a good idea for pensioners who currently don't pay NI. | | | |
| They give with one hand and take back with the other. on 16:55 - Feb 15 with 858 views | factual_blue |
| They give with one hand and take back with the other. on 15:09 - Feb 15 by Pinewoodblue |
That is why it isn't regarded, by most, as a benefit.
My personal view is that State pension should not be taxed. We should also combine Income tax & National Insurance and collect one tax, not two, which presumably would lead to a cost saving.
This would result in a lot more pensioners not paying tax. Those pensioner fortunate enough to earn over £20,000 a year would pay a higher rate in the £1 than they do now. |
I agree with this, as by extension public sector pensions shouldn't be taxed either.
After all, as a government employee one has earned income that has come from taxes, and indeed paid tax on that income.
I think this means I'm due a massive refund on 36 years' tax using the Pinewood Principle. |  |
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| They give with one hand and take back with the other. on 17:04 - Feb 15 with 816 views | factual_blue |
| They give with one hand and take back with the other. on 16:52 - Feb 15 by DJR |
Speaking as someone in receipt of a work pension, but not yet the State Pension, I don't think combining tax and NI would be a good idea for pensioners who currently don't pay NI. |
And there would be little in the way of efficiency savings, as Income Tax and NI are both collected by HMRC anyway. | |
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| They give with one hand and take back with the other. on 17:25 - Feb 15 with 771 views | factual_blue |
| They give with one hand and take back with the other. on 15:09 - Feb 15 by Pinewoodblue |
That is why it isn't regarded, by most, as a benefit.
My personal view is that State pension should not be taxed. We should also combine Income tax & National Insurance and collect one tax, not two, which presumably would lead to a cost saving.
This would result in a lot more pensioners not paying tax. Those pensioner fortunate enough to earn over £20,000 a year would pay a higher rate in the £1 than they do now. |
A number of payments that you'd class as benefits are taxable. Most commonly
Bereavement Allowance (previously Widow’s pension)
Carer’s Allowance
contribution-based Employment and Support Allowance (ESA)
Incapacity Benefit (from the 29th week you get it)
Jobseeker’s Allowance (JSA)
pensions paid by the Industrial Death Benefit scheme
the State Pension
Widowed Parent’s Allowance | |
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| They give with one hand and take back with the other. on 18:01 - Feb 15 with 735 views | iamatractorboy |
| They give with one hand and take back with the other. on 16:52 - Feb 15 by DJR |
Speaking as someone in receipt of a work pension, but not yet the State Pension, I don't think combining tax and NI would be a good idea for pensioners who currently don't pay NI. |
NI rates definitely need looking at though; above a certain level of income (I think about £50k), the rate drops from 12% to 2%. It's completely mad. | | | |
| They give with one hand and take back with the other. on 18:14 - Feb 15 with 710 views | OldFart71 |
A lot depends on whether you have extra income besides the State Pension. I for instance have SP, and two other pensions. Therefore the SP is untaxed due to it being below the taxable threshold of £12,570 and if you have a spouse you can transfer around £1250 over to yourself. My first Company pension then has an allowance of a few thousand taking it up to the threshold and then the third pension is taxed at BR (Basic Rate ) of 20%. | | | |
| They give with one hand and take back with the other. on 18:21 - Feb 15 with 701 views | OldFart71 |
| They give with one hand and take back with the other. on 15:09 - Feb 15 by Pinewoodblue |
That is why it isn't regarded, by most, as a benefit.
My personal view is that State pension should not be taxed. We should also combine Income tax & National Insurance and collect one tax, not two, which presumably would lead to a cost saving.
This would result in a lot more pensioners not paying tax. Those pensioner fortunate enough to earn over £20,000 a year would pay a higher rate in the £1 than they do now. |
Once you get to State Pension age you don't pay N.I. although I believe that they will bring in the paying of N.I. for those that continue in work into retirement which is currently not the case as I continued working from my retirement age which was 65 until I was 71 and although I paid Basic Rate tax @20% I did not however have to pay N.I. | | | |
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