State pension triple lock

[Harry Bloomfield]

Yes but my point was about those that have JUST their state pension to survive on and nothing else. They shouldn’t be given money from the government and then have to pay some of it back.

That is completely unavoidable - pensioners have to spend, to live. Most things you buy, incurs some form of tax.

 

[JohnD]

Yes but my point was about those that have JUST their state pension to survive on and nothing else. They shouldn’t be given money from the government and then have to pay some of it back.

These are people with a total taxable income of more than £12570?

Not the poorest people in our nation, but the situation arises because of the stealth tax rises our government has been implementing.

 

[Mottie]

These are people with a total taxable income of more than £12570?

Not the poorest people in our nation, but the situation arises because of the stealth tax rises our government has been implementing.

So, no proof then to back up your hunch of a post. Okay, we’ll have to leave it at that as I’m getting dizzy with all your swerving.

 

[Mottie]

That is completely unavoidable - pensioners have to spend, to live. Most things you buy, incurs some form of tax.

They are not buying anything though. They are being given money by the government that presumably deems they need it to live on with one hand and then having it taken back off of them by the same government with the other hand.

 

[fixitflav]

negative tax code

But if the £13609 pension is the only income there's nothing to apply the tax code to. Though I'm sure HMRC could find a way to do it, like knocking tax off the difference between pension and allowance.

 

[JohnD]

I wonder what the point is that mottie is hoping to make

 

[Harry Bloomfield]

They are not buying anything though.

??? I get a state pension, a part of that state pension is spent on my energy bill, 20% of the bill is VAT.

 

[Murdochcat]

But if the £13609 pension is the only income there's nothing to apply the tax code to. Though I'm sure HMRC could find a way to do it, like knocking tax off the difference between pension and allowance.

if the state pays a pension above the tax threshold, then it would be taxed at source

 

[Murdochcat]

??? I get a state pension, a part of that state pension is spent on my energy bill, 20% of the bill is VAT.

wrong.

5% vat on fuel

 

[Mottie]

??? I get a state pension, a part of that state pension is spent on my energy bill, 20% of the bill is VAT.

As said, you pay 5% on fuel but you are not taxed on your state pension by the state BEFORE you spend it on anything. Can you see what I’m saying?

 

[fixitflav]

if the state pays a pension above the tax threshold, then it would be taxed at source

Yes, that's what I suggested in my 2nd sentence. Don't know whether state pension ever exceeds the allowance though.

 

[JohnD]

Yes, that's what I suggested in my 2nd sentence. Don't know whether state pension ever exceeds the allowance though.

I think it could for a person with Graduated Pension contributions who had not been contracted out.

 

[JohnD]

As said, you pay 5% on fuel but you are not taxed on your state pension by the state BEFORE you spend it on anything. Can you see what I’m saying?

Pensions are often considered to be "deferred wages" and you pay tax when you receive them.

Personal Pensions contributions are tax free (you get a tax rebate on them) and Employers contributions are untaxed as they are not paid to you.

The principle is, untaxed on the way in; taxed on the way out.

This is advantage to people who are higher rate taxpayers when working, but basic rate taxpayers when retired.

Pensions income is untaxed, is when it falls within your personal or other allowance.

Unless you have a VC.

 

[Mottie]

Pensions are often considered to be "deferred wages" and you pay tax when you receive them.

Considered by who - you?

Personal Pensions contributions are tax free (you get a tax rebate on them) and Employers contributions are untaxed as they are not paid to you.

This is nothing to do with personal pensions. It’s the state pension I’m talking about as you well know.

The principle is, untaxed on the way in; taxed on the way out.

The state pension is gained by paying national insurance which is an earnings related tax. If you’re still unsure, take a look at the thread title and stop swerving it. I get it, you want to swerve the question I asked about your post. I’ve asked you three times, you can’t/won’t/don’t want to answer so I’ll draw my own conclusion from that. This is getting to be like the Dawn Butler thread where you make a statement to bolster your post but then will not discuss it further. TBH, I expected no less from you.