Mrs Overall Posted March 22, 2012 Share Posted March 22, 2012 I've just watched the news, and they're talking about this, but I haven't understood what it will mean to my hubby and me..both turn 65 next year. I haven't worked for about 5 yrs due to illness, my husband will finish when he's 65... Can anyone tell me ( in ordinary people talk) what difference this will make to us?... Link to comment Share on other sites More sharing options...
HeadingNorth Posted March 22, 2012 Share Posted March 22, 2012 I'll assume that you know all taxpayers have a personal allowance, an amount (about £8000) that they can earn without paying any tax. Tax is only charged on your income above that figure. Historically, if you were a pensioner, that allowance was higher than it would be for non-pensioners; the announcement yesterday, being called the "granny tax," is that this higher allowance is to be removed and pensioners will only get the same allowance as everyone else. How does this affect you personally? Well, it means that when your reach retirement age you will keep the same allowance you already had, you won't get a bigger one. Link to comment Share on other sites More sharing options...
Grandad.Malky Posted March 22, 2012 Share Posted March 22, 2012 The point where you start paying tax on your income is being frozen or reduced for people that aren’t already drawing their pension; I believe that this will bring the figures inline with the point when working people start to pay tax. Link to comment Share on other sites More sharing options...
harvey19 Posted March 22, 2012 Share Posted March 22, 2012 I'll assume that you know all taxpayers have a personal allowance, an amount (about £8000) that they can earn without paying any tax. Tax is only charged on your income above that figure. Historically, if you were a pensioner, that allowance was higher than it would be for non-pensioners; the announcement yesterday, being called the "granny tax," is that this higher allowance is to be removed and pensioners will only get the same allowance as everyone else. How does this affect you personally? Well, it means that when your reach retirement age you will keep the same allowance you already had, you won't get a bigger one. Thanks for the explanation. Link to comment Share on other sites More sharing options...
Gordonb Posted March 22, 2012 Share Posted March 22, 2012 It also depends when next year you are 65. As I understood it this measure will only come in to force next year so if you retire before the introduction date you will receive the higher allowance which will then be frozen until the standard personal allowance catches up. If you are 65 after the introduction date you will not receive the higher allowance. Link to comment Share on other sites More sharing options...
quisquose Posted March 22, 2012 Share Posted March 22, 2012 It's not a "granny tax", that is just spin from the left wing press. It is simply that non-pensioners tax free allowances are being raised, so they are being taxed less on their income, to bring them more in line with pensioners. Link to comment Share on other sites More sharing options...
Gordonb Posted March 22, 2012 Share Posted March 22, 2012 To say that the pensioners will have money taken off them is not strictly true. What has happened in the past is that over 65's have had an extra tax allowance over and above everyone else which also increased even further when they reached 75. This meant that some older people could have their state pension and perhaps a small part-time job before paying tax. This will now mean that thay will possibly end up paying tax on their job so maybe they will give it up which might mean an opening for some younger unemployed person. In future pensioners will have the same tax allowance as the rest of the population. Link to comment Share on other sites More sharing options...
frededwards Posted March 22, 2012 Share Posted March 22, 2012 It's not a "granny tax", that is just spin from the left wing press. It is simply that non-pensioners tax free allowances are being raised, so they are being taxed less on their income, to bring them more in line with pensioners. Or, in other words....... Pensioners will not recieve on penny above what they currently receive, but Wayne Rooney will receive an additional £700,000 per year for no extra effort. But, Hey! we're all in it together! It's just that some are standing on the shoulders of others. Link to comment Share on other sites More sharing options...
taxman Posted March 22, 2012 Share Posted March 22, 2012 It's not a "granny tax", that is just spin from the left wing press. It is simply that non-pensioners tax free allowances are being raised, so they are being taxed less on their income, to bring them more in line with pensioners. Do you consider The Daily Mail left wing? Link to comment Share on other sites More sharing options...
Darth Vader Posted March 22, 2012 Share Posted March 22, 2012 Or, in other words....... Pensioners will not recieve on penny above what they currently receive, but Wayne Rooney will receive an additional £700,000 per year for no extra effort. But, Hey! we're all in it together! It's just that some are standing on the shoulders of others. Well bloomin' put fred, my friend. Link to comment Share on other sites More sharing options...
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