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Post by bracknellboy on Jul 30, 2024 20:44:15 GMT
Ok then look at it the other way this year I have £12570 tax free and pay tax on the rest, next year I will have £1000 tax free and pay taxon the rest therefore my state pension income is effectively taxed at 20%. No, next year you will still have £12,570 tax free, and pay tax on the rest. The only difference is that the rest will be a far bigger number because of the state pension you receive. ^^^^This I simply do not understand an argument that the state pension should be free of tax. Why should it be differentiated from other forms of income ? A pensioner who has other income of £40k is subject to tax on that £40k, but their tax allowance is increased in line with their state pension eligibility. Why ? Why treat their state pension income different from private pension income or drawdown, or rental income, or some other income. There is simply no logic to it that I can fathom.
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keitha
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Post by keitha on Jul 30, 2024 21:49:33 GMT
I didn't say or suggest my state pension should be tax free I was pointing out that as "extra income" next year it will be taxed at 20%.
I'm happy to pay my fair share of tax and other dues.
it irks me that some of my friends who contract in various trades or are self employed, bill customers from the company, pay themselves minimum wage to minimise NI etc and then at the end of the year pay themselves most of the profit as dividends. yes I know it's legal but ...
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adrianc
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Post by adrianc on Jul 30, 2024 21:55:23 GMT
year ago I worked with a guy who had a motability vehicle, as part of the job he was required to travel but because his motability vehicle was funded apart from petrol costs, he made a massive profit on the 45p per miles allowance compared to those of us paying for insurance, tax Mot, tyres, servicing etc etc That Motability vehicle was funded by him giving up his entitlement to higher rate mobility component of DLA. Yes, "only" £75/week - but that's still £4k/year it was directly costing him. There's also a cap of 20k miles/year on it, with 5p/mile if that's exceeded - and he'd have to pay extra for business insurance. I'm also fairly sure he'd have preferred not to have had the condition that entitled him to it...
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keitha
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Post by keitha on Jul 31, 2024 9:39:09 GMT
in all honesty, and he'd say as much it hardly affected him.
there were a few things he couldn't do but as a team we knew that and made adjustments.
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keitha
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Post by keitha on Jul 31, 2024 9:47:48 GMT
i'm fuming at the entitled attitude.
speaking to a friend last night and she was saying that the removal of winter fuel allowance will hit her hard.
I was thinking but you always come across as pretty wealthy
It seems that her and her husband and her daughter in laws parents have all been giving the WFA to their son to go towards grandsons school fees, she actually said the extra they will have to find will be a struggle, with the 20% increase in fees because of the application of VAT. the grandparents between them pay all the fees.
sure I heard on the radio tis morning that this will adversely affect many councils as a lot of SEND kids are in private schools, and the rules will prevent claiming the VAT back
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adrianc
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Post by adrianc on Jul 31, 2024 10:11:18 GMT
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adrianc
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Post by adrianc on Jul 31, 2024 10:12:30 GMT
sure I heard on the radio tis morning that this will adversely affect many councils as a lot of SEND kids are in private schools, and the rules will prevent claiming the VAT back Womans Hour? Yep, I heard it. Where a SEND requires private education, and the councils pay the fees, the VAT can be reclaimed by councils. Where it doesn't, but the parents choose to pay to send their child private anyway, the parents will pay the VAT.
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Post by bracknellboy on Jul 31, 2024 10:15:16 GMT
I didn't say or suggest my state pension should be tax free I was pointing out that as "extra income" next year it will be taxed at 20%. I'm happy to pay my fair share of tax and other dues. it irks me that some of my friends who contract in various trades or are self employed, bill customers from the company, pay themselves minimum wage to minimise NI etc and then at the end of the year pay themselves most of the profit as dividends. yes I know it's legal but ... OK, well in which case I misinterpreted. However, you have previously said - unless I am mistaken, and I'm pretty sure I am not - that you think the state pension should not be taxed. That may well have triggered an unintended observational bias in my interpretation of your comments. I think agent61 effectively fell into the same thinking.
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Post by bracknellboy on Jul 31, 2024 11:20:55 GMT
i'm fuming at the entitled attitude. speaking to a friend last night and she was saying that the removal of winter fuel allowance will hit her hard. I was thinking but you always come across as pretty wealthy
It seems that her and her husband and her daughter in laws parents have all been giving the WFA to their son to go towards grandsons school fees, she actually said the extra they will have to find will be a struggle, with the 20% increase in fees because of the application of VAT. the grandparents between them pay all the fees.sure I heard on the radio tis morning that this will adversely affect many councils as a lot of SEND kids are in private schools, and the rules will prevent claiming the VAT back If ever there was a case study of why receipt of the WFA should not be universal, this is is it. Albeit that it what also needs to be taken into account is the cost of means testing vs. cost of the benefit, given that it is relatively low in value. And that of course is where tie in to receipt of pension credit kicks in, and where the boundary cases are a problem. Of all the losses of being on the wrong side of that boundary condition, this is probably the smallest in absolute terms ?
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ethel
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Post by ethel on Jul 31, 2024 11:30:34 GMT
I don't mind losing my Winter Fuel payment. I didn't need it, because I can afford to pay my fuel bills anyway, and I doubt that I will miss it, although it's always nice to get summat for nowt. It's right to take it away from people who don't need it.
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mogish
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Post by mogish on Jul 31, 2024 14:06:33 GMT
So generally most folk are in agreement with not needing it.?
With the news today of labours potential additional tax rises required to pay for the alleged inherited debt, maybe the are on the right track to get the UK back on track.
I'm sure we all agree that targeting wastage of public money has to be a priority as opposed to tax more waste more?
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keitha
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Post by keitha on Jul 31, 2024 20:59:08 GMT
I didn't say or suggest my state pension should be tax free I was pointing out that as "extra income" next year it will be taxed at 20%. I'm happy to pay my fair share of tax and other dues. it irks me that some of my friends who contract in various trades or are self employed, bill customers from the company, pay themselves minimum wage to minimise NI etc and then at the end of the year pay themselves most of the profit as dividends. yes I know it's legal but ... OK, well in which case I misinterpreted. However, you have previously said - unless I am mistaken, and I'm pretty sure I am not - that you think the state pension should not be taxed. That may well have triggered an unintended observational bias in my interpretation of your comments. I think agent61 effectively fell into the same thinking. Maybe I was clumsy in the way I expressed it, and possibly because unlike many I have my private pension before my state pension, so as it comes as extra the perception is it will be taxed at basic rate.
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adrianc
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Post by adrianc on Jul 31, 2024 21:05:47 GMT
OK, well in which case I misinterpreted. However, you have previously said - unless I am mistaken, and I'm pretty sure I am not - that you think the state pension should not be taxed. That may well have triggered an unintended observational bias in my interpretation of your comments. I think agent61 effectively fell into the same thinking. Maybe I was clumsy in the way I expressed it, and possibly because unlike many I have my private pension before my state pension, so as it comes as extra the perception is it will be taxed at basic rate. You have it the wrong way round. Sources of income aren't differentiated when it comes to income tax. The TOTAL income is taxed the same, at stepped rates. What you appear to be asking for is for some sources of income to be treated differently. The question is... just state pensions, or do you want that to apply to other sources to? Other benefits? Other pensions?
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scooter
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Post by scooter on Jul 31, 2024 21:23:37 GMT
DLA is now PIP. It is not taxed and not means tested. It is the most ridiculous set of questions you could ever ask someone who has an illness / disability and it is all down to how clever you are at filling forms in. I know, I claimed and if you ever know someone who is going to claim get them or someone else to take all the advice available on the internet or they just won't get it. People with one leg have been refused initially.... they also get reassessed in case anything has changed! Back to WFA. I think it is OK to get rid, but find the whole aspect of not putting it in the manifesto and doing it within a month of the election quite disturbing.
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keitha
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Post by keitha on Jul 31, 2024 21:24:28 GMT
No I'm not as I've said before I'm happy to pay my share.
Personally I'd like to see more loopholes closed - eg many of the BBC top earners don't work for the BBC they work for a company they own that provides their services to the BBC.
ditto I have a friend who is an IT contractor he is employed by a company he owns. His workbase is his house, his contract with his employer ( himself ) entitles him to meal allowances if he is not at his workbase. he can also claim mileage for journeys to and from places of work other than his workbase.
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