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Why don't OAPs pay tax on £1 earned past £7745?


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There has been tax relief on pension contributions since well before I started work, 12 years ago. I'm not sure when it started, but it was a long time ago. So you probably don't pay any tax on your occupational pension & didn't pay income tax on your contributions either.

 

I don't pay tax any more, because my total pensions added together (state and occupational) are below the personal allowances for over 65s. I wish they weren't. ;)

 

Of course I didn't pay tax on my pension contributions (no basic rate taxpayer should), I didn't suggest I did.

 

When I was over 60, working and getting a pension, I paid tax because my income added together took me above the personal allowance. Perhaps I didn't make it clear what I meant in my earlier post.

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When I was working (and over 60) I paid tax at basic rate on my occupational pension, my state pension was used as part of my personal allowance, and until I was 65, my personal allowance was the same as younger people's.

 

So you were receiving your occupational pension at 60 while working? Sorry, I misunderstood, I thought you meant you were contributing towards your occupational pension & paying tax on the contributions, not the amount received.

 

I still don't see why (many) pensioners get a higher personal allowance than workers, when they didn't pay tax on their pension contributions.

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So you were receiving your occupational pension at 60 while working? Sorry, I misunderstood, I thought you meant you were contributing towards your occupational pension & paying tax on the contributions, not the amount received.

 

I still don't see why (many) pensioners get a higher personal allowance than workers, when they didn't pay tax on their pension contributions.

 

Yes, I retired from full time work at 60 with a small occupational pension. I've since had several part time jobs (one at a time) where I've paid tax, but I no longer do any paid work. I wouldn't say never again though!

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Anyway, why shouldn't pensioners pay the same tax as workers?

 

Tsar, there's no chance of us getting anything when we're older. Doubt I'll ever get any kind of state pension, tax breaks, or anything else. I'll be lucky if there's still an NHS to care for me. At best I'll only be working for 10 years longer than today's pensioners, probably wont ever be able to retire.

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Why don't I receive JSA as I paid into the system all my life and do not receive state pension yet ?

 

Because you're still working? Because you aren't looking for work? Because your income is too high?

 

There are any number of reasons why a person could be not receiving JSA; without any details about your own position it's impossible for us to answer your question.

 

I don't work and don't receive JSA, because I'm not looking for work and have no intention of going back to work. (The only thing that stops me being classed as a benefits-dependent scrounger layabout, is because I'm not pretending to look for work and claiming JSA!)

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Because you're still working? Because you aren't looking for work? Because your income is too high?

 

There are any number of reasons why a person could be not receiving JSA; without any details about your own position it's impossible for us to answer your question.

 

I don't work and don't receive JSA, because I'm not looking for work and have no intention of going back to work. (The only thing that stops me being classed as a benefits-dependent scrounger layabout, is because I'm not pretending to look for work and claiming JSA!)

 

I took voluntary redundancy in my 60s and my wife still works.

The point is that I was told I don't have to sign on and look for work, which suits me but seems strange as I am not of pensionable age.

My redundancy money is paying towards our living costs until I get state pension.

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