Personally as much as I love my house I would prefer to downsize at some point due to outside maintenance unless Rachel from accounts wants to tax the bollocks off me for selling which means they will carry me out in a box.
With the New State Pension looking likely to increase in line with average earnings (4.7%) due to the triple lock, in 26/27 it will almost be, on its own, at the level of the Personal Allowance, and will be above it in 27/28.
Seeing as the Government has said it will freeze the PA until 2028 (and could be frozen longer if money needs to be found past this date) then is it time that the PA be different for different sectors of the public ? How hard would it be for the Personal Allowance to be increased to say £15000 for anyone drawing the State Pension ?
Or do the Government want to start taxing the State Pension. And if this is the only income a pensioner has then anyone over pension age could be receiving less due to being taxed on it.
I dont fancy being Rachel Reeves over the next couple of years.
With the New State Pension looking likely to increase in line with average earnings (4.7%) due to the triple lock, in 26/27 it will almost be, on its own, at the level of the Personal Allowance, and will be above it in 27/28.
Seeing as the Government has said it will freeze the PA until 2028 (and could be frozen longer if money needs to be found past this date) then is it time that the PA be different for different sectors of the public ? How hard would it be for the Personal Allowance to be increased to say £15000 for anyone drawing the State Pension ?
Or do the Government want to start taxing the State Pension. And if this is the only income a pensioner has then anyone over pension age could be receiving less due to being taxed on it.
I dont fancy being Rachel Reeves over the next couple of years.
Think I saw on the news that if the State Pension goes up 4.7% as expected then the state pension would be say £12,768 or something. If that is someone’s only income they will pay 20% tax on £198 so about £40 so hardly a major issue. However I do feel that if that is the case the threshold should be increased for those caught out by this. No one should pay tax on their state pension if that is their only income.
With the New State Pension looking likely to increase in line with average earnings (4.7%) due to the triple lock, in 26/27 it will almost be, on its own, at the level of the Personal Allowance, and will be above it in 27/28.
Seeing as the Government has said it will freeze the PA until 2028 (and could be frozen longer if money needs to be found past this date) then is it time that the PA be different for different sectors of the public ? How hard would it be for the Personal Allowance to be increased to say £15000 for anyone drawing the State Pension ?
Or do the Government want to start taxing the State Pension. And if this is the only income a pensioner has then anyone over pension age could be receiving less due to being taxed on it.
I dont fancy being Rachel Reeves over the next couple of years.
Think I saw on the news that if the State Pension goes up 4.7% as expected then the state pension would be say £12,768 or something. If that is someone’s only income they will pay 20% tax on £198 so about £40 so hardly a major issue. However I do feel that if that is the case the threshold should be increased for those caught out by this. No one should pay tax on their state pension if that is their only income.
Can't remember exact figure but will be below the Personal Allowance for the 26/27 tax year. By a few hundred quid.
It's not really about paying tax, but having elderly people having to fill on a tax return or similar.
Fyi. The State Pension is never taxed. It is "taxable" like any other income, but anyone with other income that takes them over the PA threshold then that other income is taxed.
So, if you have the State Pension & private pension, then the private pension is taxed only. You get a P60 from the Company paying the pension & that will have your tax code & amount of tax being taken.
So....no other income ? The State Pension will have to be taxed. Not sure DWP will be set up to start taxing millions of pensioners.
My money is on some form of additional.allowance. Or the Government don't bother collecting £40 from millions of pensioners.
I think they will just raise the personal allowance a little bit to take it above state pension levels. Admin costs on all those returns from people with just state pension would be pointless.
Triple lock and welfare are 2 things that will need to be addressed. Neither party has the bollocks to address the triple lock (and maybe even means testing pensions), and although the grownups in labour know about welfare reform, the backbenchers won't allow it.
I can see Starmer staring them down and threatening to call an election if they rebel. I would have so much respect for him if he did it.
I feel for Starmer and Reeves, two people in an impossible situation, and be careful what you wish for, the alternatives within labour are truly terrifying
Yes, it might be time for the State Pension to be means tested. I know lots of "pensioners" who are higher rate taxpayers WITHOUT the State Pension. A lot of them don't spend the income they have coming in and it just builds up in their bank account....... until a nice IFA invests it into their ISA every year 😉.
With the New State Pension looking likely to increase in line with average earnings (4.7%) due to the triple lock, in 26/27 it will almost be, on its own, at the level of the Personal Allowance, and will be above it in 27/28.
Seeing as the Government has said it will freeze the PA until 2028 (and could be frozen longer if money needs to be found past this date) then is it time that the PA be different for different sectors of the public ? How hard would it be for the Personal Allowance to be increased to say £15000 for anyone drawing the State Pension ?
Or do the Government want to start taxing the State Pension. And if this is the only income a pensioner has then anyone over pension age could be receiving less due to being taxed on it.
I dont fancy being Rachel Reeves over the next couple of years.
Think I saw on the news that if the State Pension goes up 4.7% as expected then the state pension would be say £12,768 or something. If that is someone’s only income they will pay 20% tax on £198 so about £40 so hardly a major issue. However I do feel that if that is the case the threshold should be increased for those caught out by this. No one should pay tax on their state pension if that is their only income.
Can't remember exact figure but will be below the Personal Allowance for the 26/27 tax year. By a few hundred quid.
It's not really about paying tax, but having elderly people having to fill on a tax return or similar.
Fyi. The State Pension is never taxed. It is "taxable" like any other income, but anyone with other income that takes them over the PA threshold then that other income is taxed.
So, if you have the State Pension & private pension, then the private pension is taxed only. You get a P60 from the Company paying the pension & that will have your tax code & amount of tax being taken.
So....no other income ? The State Pension will have to be taxed. Not sure DWP will be set up to start taxing millions of pensioners.
My money is on some form of additional.allowance. Or the Government don't bother collecting £40 from millions of pensioners.
I realise all of that. I was talking about if the State Pension was someone’s only income then no way should any of it be taxed, in my opinion.
Yes, it might be time for the State Pension to be means tested. I know lots of "pensioners" who are higher rate taxpayers WITHOUT the State Pension. A lot of them don't spend the income they have coming in and it just builds up in their bank account....... until a nice IFA invests it into their ISA every year 😉.
A government of any colour would be wise to think long and hard on that.
It would in reality be an additional tax on those people who have been able to save for retirement to provide a reasonable income level. Now, anyone will a combined gross income (including the state pension) of over £125k would pay tax on all of the state pension anyway - and that's fine as long as they still receive their full state pension. It should not be means tested.
A few things are clear, raising taxes for the people most likely to spend money and grow the economy cant happen. Even if its minimal, its such a bad look. There is so much legacy damage to be unpicked she is between a rock and a very hard place.
In my own naive head I'd put a penny on income tax across the board, abolish stamp duty, cut VAT to 15%, add VAT to kids clothes over a certain price threshold, abolish the additional tax on private education if the damage is not unrecoverable. Offer 0.1% loans to start ups focusing on innovative technology and have zero rates for anyone manufacturing anything.
Remove that fucking ridiculous additional tax burden on used vehicles who's new book price is above 40k and maybe see people spending money on cars again.
And all being well we will have growth, actual growth by next quarter.
By all means anyone feel free to rip these ideas to shreds
Comments
Seeing as the Government has said it will freeze the PA until 2028 (and could be frozen longer if money needs to be found past this date) then is it time that the PA be different for different sectors of the public ? How hard would it be for the Personal Allowance to be increased to say £15000 for anyone drawing the State Pension ?
Or do the Government want to start taxing the State Pension. And if this is the only income a pensioner has then anyone over pension age could be receiving less due to being taxed on it.
I dont fancy being Rachel Reeves over the next couple of years.
It's not really about paying tax, but having elderly people having to fill on a tax return or similar.
Fyi. The State Pension is never taxed. It is "taxable" like any other income, but anyone with other income that takes them over the PA threshold then that other income is taxed.
So, if you have the State Pension & private pension, then the private pension is taxed only. You get a P60 from the Company paying the pension & that will have your tax code & amount of tax being taken.
So....no other income ? The State Pension will have to be taxed. Not sure DWP will be set up to start taxing millions of pensioners.
My money is on some form of additional.allowance. Or the Government don't bother collecting £40 from millions of pensioners.
Triple lock and welfare are 2 things that will need to be addressed. Neither party has the bollocks to address the triple lock (and maybe even means testing pensions), and although the grownups in labour know about welfare reform, the backbenchers won't allow it.
I can see Starmer staring them down and threatening to call an election if they rebel. I would have so much respect for him if he did it.
I feel for Starmer and Reeves, two people in an impossible situation, and be careful what you wish for, the alternatives within labour are truly terrifying
A few things are clear, raising taxes for the people most likely to spend money and grow the economy cant happen. Even if its minimal, its such a bad look. There is so much legacy damage to be unpicked she is between a rock and a very hard place.
In my own naive head I'd put a penny on income tax across the board, abolish stamp duty, cut VAT to 15%, add VAT to kids clothes over a certain price threshold, abolish the additional tax on private education if the damage is not unrecoverable. Offer 0.1% loans to start ups focusing on innovative technology and have zero rates for anyone manufacturing anything.
Remove that fucking ridiculous additional tax burden on used vehicles who's new book price is above 40k and maybe see people spending money on cars again.
And all being well we will have growth, actual growth by next quarter.
By all means anyone feel free to rip these ideas to shreds