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Discounts for OAPs

Big Bellyingham said:
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
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Yeah it’s going to be a divided opinion
However if you have a private pension that you have bought over the years and by the way you never paid tax until your pension was removed from your wages
You will now pat that tax on your pension
Mousehold Mackem said:
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.
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In reality that’s what is happening
However remember people on benifits who never bought a pension or worked now pay no tax
42 said:
You can opt out by not having a job.
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All government employers were opted out from circa 1976-2017
 
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Vincemac said:
In reality that’s what is happening
However remember people on benifits who never bought a pension or worked now pay no tax
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So should we let them starve in their old age or leave them on benefits?

I was talking about people who'd paid into private pension schemes and received tax breaks not scratters.
 
Vincemac said:
Yeah it’s going to be a divided opinion
However if you have a private pension that you have bought over the years and by the way you never paid tax until your pension was removed from your wages
You will now pat that tax on your pension

In reality that’s what is happening
However remember people on benifits who never bought a pension or worked now pay no tax

All government employers were opted out from national insurance and paid a reduced rate circa 1976-2017
Click to expand...
Mousehold Mackem said:
So should we let them starve in their old age or leave them on benefits?

I was talking about people who'd paid into private pension schemes and received tax breaks not scratters.
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Yeah they now pay the tax on there pensions They've bought
Mousehold Mackem said:
So should we let them starve in their old age or leave them on benefits?

I was talking about people who'd paid into private pension schemes and received tax breaks not scratters.
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Ohhh and don’t worry those on benifits will not starve
 
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John Steed said:
Good. It's bloody ridiculous to be paying income tax when you live on that pathetic amount of money.
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Then raise the personal allowance. If the SP goes above the personal allowance they should pay tax on it. Everyone else pays tax on their income above the personal allowance, so should they.
 
Vincemac said:
Yeah it’s going to be a divided opinion
However if you have a private pension that you have bought over the years and by the way you never paid tax until your pension was removed from your wages
You will now pat that tax on your pension

In reality that’s what is happening
However remember people on benifits who never bought a pension or worked now pay no tax

All government employers were opted out from circa 1976-2017
Click to expand...

No, they were opted out of the 2nd state pension so paid lower NI conts (and it was only something like a 1.8% reduction)
 
Frijj said:
Then raise the personal allowance. If the SP goes above the personal allowance they should pay tax on it. Everyone else pays tax on their income above the personal allowance, so should they.
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They'll have to raise tax codes because that's the problem. Do a U turn and raise them before 2031.
The allowances haven't kept up with the cost of living today. £12570 is stupidly low as an allowance in 2026. Somebody living on something like 13k a year shouldn't be paying tax on that amount. It's a joke. It's like the idiots in government don't know what it costs to live in the UK today. That or they just don't care.
 
Vincemac said:
Leave who on benifits
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The scratters who nevver worked a day in their life
John Steed said:
They'll have to raise tax codes because that's the problem. Do a U turn and raise them before 2031.
The allowances haven't kept up with the cost of living today. £12570 is stupidly low as an allowance in 2026. Somebody living on something like 13k a year shouldn't be paying tax on that amount. It's a joke. It's like the idiots in government don't know what it costs to live in the UK today. That or they just don't care.
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If they change the tax code does that mean pensioners will avoid paying income tax on the basic pension? that seems like a sensible option as the idea of millions of pensioners trying to fill out a tax return for the income off the basic state pension is incredibly stupid and would cost more to collect than the Government would earn.

Otherwise the only option is to raise tax allowances for everyone which both the Tories and Labour have frozen until 20???.
 
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Mousehold Mackem said:
The scratters who nevver worked a day in their life


If they change the tax code does that mean pensioners will avoid paying income tax on the basic pension? that seems like a sensible option as the idea of millions of pensioners trying to fill out a tax return for the income off the basic state pension is incredibly stupid and would cost more to collect than the Government would earn.

Otherwise the only option is to raise tax allowances for everyone which both the Tories and Labour have frozen until 20???.
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Martin Lewis has said the government have told him that pensioners who only have state pension as income wont pay income tax. So there'll likely be age related personal allowances. This idea was actually proposed by Sunak in the run up to last election
 
Mousehold Mackem said:
The scratters who nevver worked a day in their life


If they change the tax code does that mean pensioners will avoid paying income tax on the basic pension? that seems like a sensible option as the idea of millions of pensioners trying to fill out a tax return for the income off the basic state pension is incredibly stupid and would cost more to collect than the Government would earn.

Otherwise the only option is to raise tax allowances for everyone which both the Tories and Labour have frozen until 20???.
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Tories froze allowances till 2026. They then extended the freeze till 2028. Then labour extended the freeze again until April 2031.
The problem only applies to pensioners who live solely on the state pension. Any pensioner with a private pension will have tax taken from that. The state pension isn't taxed at source but it's classed as taxable income. Currently it's a few quid below the standard personal allowance. Which is going to cause a problem next April when the state pension is likely to increase.
As you say having loads of oaps filling out tax returns will be crazy. So I'd imagine HMRC will create a new tax threshold for those who only have the state pension as an income. That will stave off the outcry about the elderly having to pay tax on what is a very small amount of money they have to live on.
I can't see the government increasing everybody's threshold. It would help a lot of people though, particularly those on a low income.
 
Vincemac said:
by the way you never paid tax until your pension was removed from your wages
You will now pat that tax on your pension

In reality that’s what is happening
However remember people on benifits who never bought a pension or worked now pay no tax

All government employers were opted out from circa 1976-2017
Click to expand...
That doesn't apply to all private pensions. Only workplace pensions.
I took one out a long time ago and paid it by direct debit. So I paid it with income that had already been taxed.
 
John Steed said:
That doesn't apply to all private pensions. Only workplace pensions.
I took one out a long time ago and paid it by direct debit. So I paid it with income that had already been taxed.
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But you get the tax back.
Deposit £80 & government bump it upto £100. So in effect, youve deposited £100 & paid £20 less tax. The net effect is exactly the same
 
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