old tup Posted August 22, 2012 Share Posted August 22, 2012 I,ve been retired nearly 5yrs now and enjoying it very much,the only blot in my mind is I feel a bit miffed having to pay tax on my pension!.I,ve never been out of work since leaving school at 16yrs old up to retiring,I feel I,ve contributed my full share in tax over my working life.In my mind the person who works and pays his dues gets shaffted in this country you may as well toss it off claim as many benefits as you can as quite a lot do and you will be looked after until you fall off your perch!.Thats it rant over any comments?. Link to comment Share on other sites More sharing options...
Jim Hardie Posted August 22, 2012 Share Posted August 22, 2012 I,ve been retired nearly 5yrs now and enjoying it very much,the only blot in my mind is I feel a bit miffed having to pay tax on my pension!.I,ve never been out of work since leaving school at 16yrs old up to retiring,I feel I,ve contributed my full share in tax over my working life.In my mind the person who works and pays his dues gets shaffted in this country you may as well toss it off claim as many benefits as you can as quite a lot do and you will be looked after until you fall off your perch!.Thats it rant over any comments?. I agree with your sentiments 100% but it's your income that's being taxed. The tax free personal allowance should be higher. Link to comment Share on other sites More sharing options...
wiseroni Posted August 22, 2012 Share Posted August 22, 2012 If you're 65 then your allowance is about 10k I believe so you obviously have more than just a state pension. The extra pension you have was paid for by you but don't forget that at present rates for every £1.00 you contributed you would actually have had £1.20 "invested" for you over the years and tax rates plus investment returns have actually been much higher than now. 1 know how it feels mate as I pay tax on my pension. Link to comment Share on other sites More sharing options...
kidley Posted August 22, 2012 Share Posted August 22, 2012 Hi old tup The reason you are taxed on your pension is that the money was not taxed at source, meaning that your contributions that you made were not taxed, it was taken off your salary before you were taxed so if you contributed £1 to your pension fund £1 went in to your pension fund untaxed, so when you receive your pension its taxable but as said above your are allowed to receive about £10000 before that happens. Link to comment Share on other sites More sharing options...
biotechpete Posted August 22, 2012 Share Posted August 22, 2012 It'd be the biggest tax dodge loophole on the planet if you weren't. Link to comment Share on other sites More sharing options...
Janus Posted August 22, 2012 Share Posted August 22, 2012 If you're 65 then your allowance is about 10k I believe so you obviously have more than just a state pension. /QUOTE] Maybe he has a pension that is more than £200 per week net (or more than 10k net)? Hi old tup The reason you are taxed on your pension is that the money was not taxed at source, meaning that your contributions that you made were not taxed, it was taken off your salary before you were taxed so if you contributed £1 to your pension fund £1 went in to your pension fund untaxed, so when you receive your pension its taxable but as said above your are allowed to receive about £10000 before that happens. That, is a very good point Kidley. Link to comment Share on other sites More sharing options...
flat-budger Posted August 22, 2012 Share Posted August 22, 2012 Hi old tup The reason you are taxed on your pension is that the money was not taxed at source, meaning that your contributions that you made were not taxed, it was taken off your salary before you were taxed so if you contributed £1 to your pension fund £1 went in to your pension fund untaxed, so when you receive your pension its taxable but as said above your are allowed to receive about £10000 before that happens. Technically if you paid £1 into your pension fund you're only really paying about 80p (assuming you're taxed at 20%) because your tax bill reduces because your taxable pay is less, because the pension contribution is removed before tax. if that makes sense. Link to comment Share on other sites More sharing options...
flat-budger Posted August 22, 2012 Share Posted August 22, 2012 Would it be fair for someone to have a pension of £100000 and not pay tax on it? They'd use the roads and hospitals just the same as everyone else, so why shouldnt they contribute? Link to comment Share on other sites More sharing options...
tbtc Posted August 22, 2012 Share Posted August 22, 2012 Would it be fair for someone to have a pension of £100000 and not pay tax on it? They'd use the roads and hospitals just the same as everyone else, so why shouldnt they contribute? Although pensioners on £100,000 will get a free bus pass, heating allowance etc. Only fair that people pay tax on their income - the difference is that pensioners can earn a lot more than workers before they need to pay any tax. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted August 22, 2012 Share Posted August 22, 2012 Although pensioners on £100,000 will get a free bus pass, heating allowance etc. Only fair that people pay tax on their income - the difference is that pensioners can earn a lot more than workers before they need to pay any tax. Over 65s have a bigger personal allowance, but the difference is being eroded. Eventually we'll all have the same basic allowance. Although I'm retired, I think it's a good thing to lift the threshold for workers. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.