BiG
Winger
I’m in the max. It’s below the tax threshold. What an I missing?
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Discounts for OAPs
- Thread starter chunkyshanhawk53
- Start date
John Steed
Striker
A standard tax code is 1257L. That means you can earn £12,570 a year before paying tax.
The full state pension is currently £12,547.60.
Less if you're older and on the old state pension.
Take the second figure away from the first and you have about £23. £22.40 if you want to be exact.
That means you can earn £23 a year from private pensions or other sources before you pay tax.
So if the state pension goes up next year more than £23 then you will be taxed on it.
Big Bellyingham
Central Defender
If you are getting a private pension and a state pension are you bothered if you pay a bit more tax Probably not-?unless the thought process is I’ve saved and grafted for a private pension to be in a good position and worked all my working life paying full NI contributions as asked to do so …to receive the state pension
Is that greed -? Or is it planning for the futire as advised and asked to do so ?
It certainly divides opinions it seems
John Steed
Striker
The conversation was about the state pension being taxed if you have no other income from private pensions.
This could happen next year unless the government increases the tax code for those who live only on the state pension. Our government have said they will not be increasing personal allowances till 2031 though.
There's a general election before then so we could have different incumbents in 2031. So even that could change.
42
Striker
Wowza -you have lit the touch paper -now stand back …
Though the Government are now saying our pensions are in fact also a benefit and should not be seen as an expectation ?( despite paying in as requested by Governments for about 50 years of full working life ?)
Only recently the wording has changed to “benefit”-cannot see why they’ve done this
Its been classed as a benefit since 1948
Big Bellyingham
Central Defender
That’s even a few years before my time started
But I have to say up until recently I had never heard a Government start referring to the state pension as a benefit-things are about to change is what I thought
Are you obliged to pay National Insurance ( I always did ) or can you opt out
42
Striker
You can opt out by not having a job.
Big Bellyingham
Central Defender
John Steed
Striker
It has to be classed as a benefit for it to be paid out from the existing social security network.
It's very much different to other benefits though, which are means tested handouts. The state pension isn't means tested, isn't a handout and is classed as a contributory benefit.
Calling it a benefit gives it a bit of a stigma like it's a cap in hand payout. But it isn't, it's a benefit only in name. Private pensions pay out defined benefits, they use the same word.
BiG
Winger
Well I’m surprised to learn those figures for the full state pension. I’m 71 so I presume the ‘less if you’re older’ must apply to me because I was informed I was on the full pension, and I get less than that.
I’m still confused about what the issue is - but not to the extent that I can be arsed to read back through the thread to clarify it - because of course I’m aware that pensions are taxed. Because I’m taxed. Just not on the state pension because by itself it doesn’t exceed the threshold. And you say, if and when it does, it’ll be liable to tax, unless the tax threshold is amended.
All in all I suppose the only observation I have is that it seems a silly administrative inefficiency to tax the population in order to pay a pension to some of them, which is then, in turn, taxed.
My confusion in what the actual issue or problem within the thread may have led to some wording that caused problems in understanding what I’m on about. For which I apologise.
So anyway. I think now, that the problem is that people don’t like businesses giving discounts to old people to attract their custom, because they think that’s unfair on the people who aren’t old. And the solution is euthanasia.
Have I got that right?
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42
Striker
Aye, you get NI credits when signing on the dole
Big Bellyingham
Central Defender
Im a bit thick ….
So you are saying if I never worked - I would get the same pension as I get for having fully contributed via NI while working all my life ?
Slightly less. But aye.
Big Jeff
Striker
A better solution would be to compel those in receipt of benefits who are fit for work to actually do some community service before they receive their benefits.
Don’t turn up for your community work, no benefits.
It would result in a better community spirit and give us a fitter workforce who would be motivated to find paid employment.
I also believe that pensioners should not pay income tax. As long as they have a complete NI record and have worked for 35 years or more they should be exempt from income tax. These older citizens have contributed enough and should be able to enjoy a few luxuries in their later years.
Yes there’s a few very rich pensioners but even they will have paid a fortune in tax over their working lives.
Mousehold Mackem
Midfield
Isn't the tax pensioners pay over and above their basic pension just giving back the tax relief they received on their private pensions over the years? Don't see a problem in that myself.
42
Striker
Yes. Works pension is basically deferred pay, as such the tax is also deferred until the income is drawn down.
What age is OAP these days?
Are they all multi millionaires the second they hit that age…..hope it’s 60 as I’m nearly there..can’t wait…
