keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Jul 25, 2024 10:44:47 GMT
Intended as a light hearted thread, not mega political
start with Winter fuel payments, I think that the current situation of people in care homes getting £250 is ridiculous, so that could go.
I thought about means testing it but would the admin costs outweigh the savings ?
Limit tax relief on pension contributions, also stop people getting pensions paying into another and claiming tax relief, I know someone at 70 paying into a pension that he will never touch ( and it's in his will how it will be distributed ) he's paying his entire state pension plus about 30% of his main pension in.
Review Council Tax :- 50% discount for single occupancy, 50% premium for every adult more than 2 living in the property
Encourage Green energy at home, at the moment If I import £1 of electricity and export £1 on the same day I pay VAT on the £1 import, yes I know it's only 5p but ... I'd also do something with the SC for people who are net exporters.
Encourage energy saving at home I'd limit the standing charge to 40% of the usage cost, it is a nonsense that an elderly lady across from me uses < 4kWh a day and is paying £1.60 a day of which 60p is the standing charge, at this time of year my gas usage is often < 10p a day and the standing charge is 25p. I'd also apply this to water.
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cb25
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Post by cb25 on Jul 25, 2024 10:51:11 GMT
I know someone at 70 ... paying his entire state pension plus about 30% of his main pension in. Do pension payments count as qualifying income when it comes to contributing to a pension, or is it that he has job earnings that allow that level of contributions?
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Jul 25, 2024 10:55:26 GMT
nope you can pay in from a pension or pensions - tax relief stops when you hit 75
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cb25
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Post by cb25 on Jul 25, 2024 10:59:13 GMT
keitha Do you have a link for that?
I contacted a SIPP provider recently to ask about SIPP contribution limits for my situation, income from state and company pensions but no job. Their reply was:
"you can still open a SIPP, even though you have a workplace and state pension.
You are also correct in saying that if you have no UK relevant earning, then the maximum you can contribute to your SIPP is £3600 (gross)
or £2880 (net), which is then topped up by £720 due to the tax relief, to make the £3600."
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Post by mostlywrong on Jul 25, 2024 11:07:12 GMT
keitha Do you have a link for that? I'm in receipt of state and company pensions and currently thinking about opening a SIPP. Nothing I've read so far - other than your comment - suggests my pension income would come as qualifying income. Rather, having no income from a job, I'd be limited to £3,600 gross. That is my understanding of the current position.
No "earned" income means a maximum of £2880 paid in which comes with a £720 "bonus" a few weeks later. Scotland might be different...
Pensions, dividends, interest income and benefits are all "unearned" income in the eyes of the government. So they don't count.
If you can afford it, open the SIPP now! Unless, of course, you think that the Chancellor might change the rules!
MW
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Post by mostlywrong on Jul 25, 2024 11:09:49 GMT
If the Chancellor takes my £10 Christmas Bonus from my grasping hands, I will be most upset.
MW
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cb25
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Post by cb25 on Jul 25, 2024 11:09:56 GMT
mostlywrong What you've said matches what I've read and - in my edited post - what I was told by a SIPP provider. Though the tax relief is clearly useful, the fact that you pay tax on 75% of the SIPP when withdrawing leaves me with the impression the gain isn't massive.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Jul 25, 2024 11:10:44 GMT
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Jul 25, 2024 11:13:57 GMT
If the Chancellor takes my £10 Christmas Bonus from my grasping hands, I will be most upset.
MW
I think it needs to be uprated or abolished £10 isn't even a bottle of wine these days pretty sure when it was introduced it would buy a decent Christmas dinner
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Post by mostlywrong on Jul 25, 2024 11:18:35 GMT
mostlywrong What you've said matches what I've read and - in my edited post - what I was told by a SIPP provider. Though the tax relief is clearly useful, the fact that you pay tax on 75% of the SIPP when withdrawing leaves me with the impression the gain isn't massive. You make a good point and one that is worth considering when you decide whether or not to invest.
It also depends upon how old you are, whether or not your estate is likely to pay inheritance tax and whether or not you have beneficiaries in mind.
If you can afford it, that £3600 pa soon adds up and makes a nice little nest egg either for your future or for your children/nieces & nephews. Or, maybe, a charity.
Of course, if you don't have any beneficiaries in mind, I am quite prepared to offer my services... 
MW
Edited to add: watch carefully for the charges that your broker makes. HL. is expensive. AJ Bell looks fairly good. II's charges look fairly low.
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spiral
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Post by spiral on Jul 25, 2024 11:29:19 GMT
Review Council Tax :- 50% discount for single occupancy, 50% premium for every adult more than 2 living in the property Who are you trying to bring down. In the 90's this was known as poll tax and brought down Maggie.
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spiral
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Post by spiral on Jul 25, 2024 11:32:48 GMT
start with Winter fuel payments, I think that the current situation of people in care homes getting £250 is ridiculous, so that could go. I agree if your care is state paid but for those funding themselves, £250 over a year only knocks £5pw off of fees that could be £1500+.
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benaj
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Post by benaj on Jul 25, 2024 11:34:03 GMT
Just giving heads up. I got a letter from the council about band review a few days ago. Is this just a coincident with the new governement or is it just the right time for the council to review?
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Jul 25, 2024 11:47:15 GMT
Have to ask how he's doing it he's on full(ish) state pension and his other pensions are nearly £40k
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IFISAcava
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Post by IFISAcava on Jul 25, 2024 12:23:05 GMT
keitha Do you have a link for that? I'm in receipt of state and company pensions and currently thinking about opening a SIPP. Nothing I've read so far - other than your comment - suggests my pension income would come as qualifying income. Rather, having no income from a job, I'd be limited to £3,600 gross. That is my understanding of the current position.
No "earned" income means a maximum of £2880 paid in which comes with a £720 "bonus" a few weeks later. Scotland might be different...
Pensions, dividends, interest income and benefits are all "unearned" income in the eyes of the government. So they don't count.
If you can afford it, open the SIPP now! Unless, of course, you think that the Chancellor might change the rules!
MW
If you believe the rumours then might be better to wait and get a 30% tax rebate rather than 20%.
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