Wasn't warned about this catch.

[ColinJ]

Are you sure? The state pension is £11973pa + £600 = £12573. The tax threshold is £12570.

£12,573 > £12,570!

Actually, the private pension is approximately £600 after the tax has been taken off.

I am not paying much tax and I agree with the statement...

Why does everyone hate paying tax. It pays for hospitals, police, fire, roads...just because you are on a pension doesn't mean you shouldn't contribute to society if you can afford it.

I just think that it is odd that my income is so low that I qualify for housing benefit to help with my rent, but money is then taken back off me!

 

[Drago]

My late father always moaned about oaying tax. I asked him where did he think the money for his (teacher's) wages and subsequently pension had come from

Poorer folk like me and thee. Senior politicians try to avoid payjng it, and the seriously wealthy have the wherewithal to duck and dive financially. It isn't doingius at the lower end any kind of favour.

We get bent over and when they give a little bit back we're supposed to be grateful?

 

[ebikeerwidnes]

Poorer folk like me and thee. Senior politicians try to avoid payjng it, and the seriously wealthy have the wherewithal to duck and dive financially. It isn't doing ius at the lower end any kind of favour.

That is the bit that annoys me (other term are available)

The rich should be ahppy to pay it - it is their responsibility
and listening to them you would think they were paying ALL of their salary as tax
when in reality it is the same as someone on a much lower salary


and by salary - I mean all the things they get for working and not just the stuff that is "just money"
so shares and company cars and all that

and if some of the bugger off to Dubai (not think of any politicians her at all) then good riddance
OK OK - a few might relocate their company as well - or threaten it
but is they will do that because it saves them money - they were going to do it anyway!

 

[cisamcgu]

This is the tax distribution across earnings :

 

[albion]

Poorer folk like me and thee. Senior politicians try to avoid payjng it, and the seriously wealthy have the wherewithal to duck and dive financially. It isn't doingius at the lower end any kind of favour.

We get bent over and when they give a little bit back we're supposed to be grateful?

Thats the thing. Farms are overpriced, them being about the biggest inheritance tax dodge available.
But it is the likes of you and me who end up financing all the missing government revenue.

 

[PaulSB]

£12,573 > £12,570!

Actually, the private pension is approximately £600 after the tax has been taken off.

I am not paying much tax and I agree with the statement...


I just think that it is odd that my income is so low that I qualify for housing benefit to help with my rent, but money is then taken back off me!

Ah, I thought from your comment the private pension was £600 before tax. It's usually expressed as a gross figure. For example I only have state pension but my wife has a state pension plus a pension of £xxxx which is taxable.

Yes, I know £12573 is greater than £12570 but only £3. Thinking your £600 was gross was why I highlighted it.

As for the housing benefit that's how it works. My middle son has Downs syndrome with supported living in the community. He receives a range of benefits from various sources which he then pays back to other agencies!! It is bizarre but after a lifetime of navigating the system I can understand why it is as it is.

 

[roubaixtuesday]

Poorer folk like me and thee. Senior politicians try to avoid payjng it, and the seriously wealthy have the wherewithal to duck and dive financially. It isn't doingius at the lower end any kind of favour.

We get bent over and when they give a little bit back we're supposed to be grateful?

People at the lower end of the income bracket in the uk actually pay less tax than pretty much anywhere in the developed world.

 

[FishFright]

At risk of getting political, the very people that insist the lowly masses pay tax seem so reluctant to pay it themselves.

If there's one thing the public cant abide in elected representatives is crass hypocrisy.

Thats an observation, not a comment. A question asked and answered.

And while we're scrutinised for every penny, large corporations with telephone number turnovers get to sit down with HMRC and  negotiate how much they pay.

And then theres VAT, a further tax upon income which has already been taxed. Rather than go political ill let you Google to see how we ended up with VAT in the UK.

And with fuel we've paid income tax on the money we use to buy it, and duty, and VAT on the cost of the fuel and the duty - tax upon tax upon a third tax.

So for these reasons and more we resent paying tax.

And the owner of JCB owes around half a billion in unpaid taxes , one rule etc .

 

[ebikeerwidnes]

And the owner of JCB owes around half a billion in unpaid taxes , one rule etc .

But but but - if you made him pay all that then he might leave the country and there were would we be!!!

apparently

 

[DCLane]

Following this as I'm at the point continuing to earn a salary, plus pay into a pension, is putting me at risk of much higher taxes versus taking the pension a lot sooner ... (mine's an education pension).

 

[FishFright]

But but but - if you made him pay all that then he might leave the country and there were would we be!!!

apparently

Resident in Switzerland

 

[Regular.Cyclist]

NHS worker here who’s already drawing a private pension, and pay handsomely in tax on it.

Planning on retiring in a little over three years when I will take the ‘95 scheme part and of the NHS pension, sometime later I’ll draw the CARE scheme part and the state pension unless I get robbed of that before then.

Under no illusion that I am likely to hit the higher tax bracket (especially as it’s lower in Scotland than England) so that has been calculated into my future income.

 

[Chislenko]

I think, again without making it political, the salient point of this thread is why bother to try and provide a better future for your old age?

 

[roubaixtuesday]

I think, again without making it political, the salient point of this thread is why bother to try and provide a better future for your old age?

The tax arrangements on pensions obviously are political points.

That the thread is full of pensioners - the group that gets the most benefit from government spending by a country mile - complaining about paying tax on their income, is richly ironic.

 

[teeonethousand]

When I reached 65, I decided to carry on working as I was enjoying what I was getting paid for and the extra five years I did would enhance my state pension.
However, after a couple of 'unpaid tax' demands form the HMRC this year, it transpires that my state pension 'extra amount' has put me rather above the personal allowance limit, so now I'm getting charged tax on the extra pension I worked another five years for - !
Apparently it's termed 'fiscal drag' because the persona allowance rate isn't keeping up with the increase in state pension.
I shall be 'phoning HMRC tomorrow to see if there's a way they can alter the tax rate on my pension bit so we both don't have to waste time & effort in making the calculations.

There is no catch ..you did a smart move.

If you had taken it at 65 and were still working it would have counted as income and would consume your then tax allowance and so you would have paid more tax. Depending on your earnings you might have been pushed (further) into higher rate.

Also, by not taking it you probably benefitted from higher growth .