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£140 a week!
Comments
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It is all so unclear - even my MP has not been able to clarify it.
Well he wouldn't would he?
A Green Paper is "a preliminary report of government proposals published to stimulate discussion."
It certainly has 'stimulated discussion' on forums like this, but when those discussions start criticising the fact the the details are not clear, then that's a bit like asking exactly what flowers, and how many exactly, are going to decorating Westminster Abbey on April 29th for the Royal Wedding.
Everybody might have wishes and views, but even Kate does not know.0 -
I've been contracted out of SERPS for a long time.
Mathematically I believe for most of the time I would be better off IN and not OUT, but I prefer having the money in my own pot rather than be subject to whatever a governement decides at any time in the future.
This is a choice you have had and a risk you are taking.0 -
And the government may still decide to deduct from any entitlement you might have to the much heralded £140 per week in view of your (and my) pot of contracted out gold...I've been contracted out of SERPS for a long time.
Mathematically I believe for most of the time I would be better off IN and not OUT, but I prefer having the money in my own pot rather than be subject to whatever a governement decides at any time in the future.
This is a choice you have had and a risk you are taking.0 -
Somewhat off-thread, tax rather than pensions, but some of the fog surrounding Personal Tax Allowances has cleared. This is a quotation from an email from BBC Radio 4's Money Box . . .
TAX: The tax details for 2011/12 were finally released on Thursday. Highlights are that the personal tax allowance will rise by £1000 to £7,475 – as we knew – and the higher allowance for those aged 65-74 and aged 75 or more will both go up by £450 to £9,940 and £10,090 – though only if your income is less than £24,000 (up from £22,900 last year). Above that the higher allowance tapers back down to the standard. Higher rate tax will begin to be paid on annual incomes above £42,475 which is £1400 less than the limit this year (£43,875). The intention is that higher rate tax payers will not gain from the £1000 rise in the personal tax allowance. But changes in National Insurance limits and rates make the arithmetic very complex and lead to this big cut in the threshold.
Next year, if there is another £1000 rise in the personal allowance, there will be another cut in the income at which higher rate tax is paid and that will be the income limit which is used in January 2013 to take back Child Benefit from higher rate taxpayers. So that claw back could affect people with an annual income of less than £42,000, far lower than anticipated during the big debate on the Child Benefit change this year.0 -
£42k is "far lower" than £43,875?0
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Why was anyone doing any anticipating at all? The Government announced in June 2010 that higher rate threshold will be reduced by approximately £1,500. Later in the summer they announced that Child Benefit will be withdrawn from higher rate taxpayers.So that claw back could affect people with an annual income of less than £42,000, far lower than anticipated during the big debate on the Child Benefit change this year.
I don't even have kids and was well aware of the implications
I'm beginning to despair at the (lack of) awareness people, media and commentators show to important points of detail. Hmmm, perhaps I've read too many of the responses to the "Ask the Pension Minister" thread - I see Dunstonh was doing a sterling job trying to stem the tide of ill-informed conjecture, but I fear he is fighting a hopeless battle.
They've only announced the new values for 2011/12, no part of the structure has been amended - so whilst there isn't simplification, there isn't any further complexification eitherI thought this lot were intent on simplifying things, but this is ludicrously complicated.
Does anyone have a link to the formal Government document announcing the new income bands - I can't find one which is a bit odd.
Edit: Found it, link here.0 -
It is all so unclear - even my MP has not been able to clarify it.
If you are correct in saying it won't effect me, then super, I need not worry further.
Don't know what you think, but I think this lot are trying to do too much too soon.
They only have 5 years to make the changes they think are needed and are already well into their first year, so there's not much time to make the changes as they will need to be phased in. 2010/11 is a lost year as it had already started when the coalition came to power. 2011/12 is a fudge as they've had to make the announcements, but havn't yet had proper time to evaluate and discuss their proposals. Expect big changes on 2012/13 and 2013/14. And then it's election year again, so no time for any more fundamental changes to be made. When I say "big changes" for 2012 - 2014, from talking to a couple of people with friends in the Treasury, they really are thinking the unthinkable - they're looking at fundamental changes, not just tinkering around with allowances and rates. There's a real and growing enthusiasm for scrapping NICs and increasing income tax basic rate to make up the shortfall. There's real and growing enthusiasm for taking a hatchet to the (over a thousand at the last count) tax allowances and various reliefs. Apparently the office of tax simplification really is working hard to come up with fundamental changes to tax, not just the usual tinkering, and the ministers are apparently more open than they've ever been to massive changes. There's a general feeling that we may actually get fewer taxes and maybe lower tax rates in return for giving up hundreds of allowances and reliefs. We may even get transferable allowances between husband and wife. It's all up in the air, but unless the top politicians get cold feet, we really are looking at a revolution in taxation in the next four years.0 -
Expect big changes on 2012/13 and 2013/14. And then it's election year again, so no time for any more fundamental changes to be made. When I say "big changes" for 2012 - 2014, from talking to a couple of people with friends in the Treasury, they really are thinking the unthinkable - they're looking at fundamental changes, not just tinkering around with allowances and rates. There's a real and growing enthusiasm for scrapping NICs and increasing income tax basic rate to make up the shortfall.
Well I agree this is what has been promised, but I always wonder the degree to which "Sir Humphrey" and his merry men can be persuaded to 'do' something other than incremental change.
I strongly suspect the scrapping of NI. It is an outdated concept, and I think (sadly for me) they see the current retirement of reasonably well-off 'baby boomers' as fair game to contribute not only 'tax' but 'National Insurance'.0
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