IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
NHS Pension lump sum to be taxed?
Closed Thread
Views: 5,616
Thread Tools Search this Thread Display Modes
# 1
butterfly72
Old 22-01-2011, 9:15 PM
Serious MoneySaving Fan
 
Join Date: Jan 2007
Posts: 1,115
Default NHS Pension lump sum to be taxed?

I've heard that the government are considering taxing the 'tax free' lump sum we get on retirement. Anyone else heard this? Could they really do this?

It's just getting better.... payfreeze, high cost of living area freeze, increment freeze, no increase on my mileage allowance, more tax, more NI, pay more for my pension..... Christ, I'm gonna be paying them to go to work soon!
Increasing my house deposit
Increasing my pension
Horse fund: 8/8K - horse hunting starts Sept 13
butterfly72 is offline
Report Post
# 2
dunstonh
Old 22-01-2011, 9:31 PM
Mega Magnificent Maxi-Meticulous Uber-MoneySaving Magnate
 
Join Date: Apr 2004
Location: Norfolk
Posts: 75,319
Default

Quote:
I've heard that the government are considering taxing the 'tax free' lump sum we get on retirement. Anyone else heard this? Could they really do this?
There is no such proposal or even a hint of a rumour. Its one of these myths that goes around from time to time and has done for over 30 years. It seems to be doing the rounds in the NHS at the moment as you are third NHS member to ask this on these forums. Most workplace stories are false and spread by know it alls (who know nothing) or jaded troublemakers who do it maliciously.
I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
dunstonh is online now
Report Post
The Following 2 Users Say Thank You to dunstonh For This Useful Post: Show me >>
# 3
Burridge60
Old 22-01-2011, 9:44 PM
MoneySaving Stalwart
 
Join Date: Jan 2011
Location: Chelmsford Essex
Posts: 490
Default

They might re launch the scheme without this for new staff entrants. But given the Government's declared aim to slim down the NHS in theory they shouldn't be employing new staff for some time to come so it is unlikely to deliver any massive savings.

There is no knowing what a future Government might do in defence of the State. Extending State Retirement Age was already Government Policy and now it is Government Policy to accelerate this further. The same Government just a different hue.
I am a Mortgage Advisor
You should note that this site doesn't check my status as a Mortgage Advisor, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
Burridge60 is offline
Report Post
# 4
Loughton Monkey
Old 23-01-2011, 12:41 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jul 2010
Location: Loughton, Essex
Posts: 8,242
Default

You need to be concerned that you are quite low down in the "NHS Rumour Food Chain".

This worthless, idiotic, baseless, ill informed rumour was 'doing the rounds' well before Christmas. You need to ask why you have only just 'heard' of this tripe. After all, what if, for a change, you get a "truthful" rumour within the NHS? You might find it has happened before you get to hear of it.

Firstly, cast this thought completely from your mind. Secondly, sharpen up your grapevine.
Loughton Monkey is offline
Report Post
# 5
fionadc
Old 23-01-2011, 3:20 PM
MoneySaving Newbie
 
Join Date: Dec 2009
Posts: 9
Default .

Can I also say, as a fellow NHS Employee, that at least 2 of the cuts you list have not taken place, certainly not in my healthboard anyway. I was under the assumption that pay related issues were national rather than decided at healthboard level? Therefore I can only assume you are misinformed and you should look into this.
fionadc is offline
Report Post
# 6
Cautious Investor
Old 23-01-2011, 4:12 PM
MoneySaving Stalwart
 
Join Date: Sep 2010
Posts: 578
Default

Hi

For any change to take place to the tax free lump sum it would have to be doen across the board i.e. not only to the NHS but all pension schemes of any sort.

However, like others on here I have heard nothing over the past couple of years to indicate a change is even being considered let alone on the way.

The Cautious Investor
Cautious Investor is offline
Report Post
# 7
cnile
Old 24-01-2011, 10:34 PM
MoneySaving Newbie
 
Join Date: Jan 2011
Posts: 11
Post

Hi
I am also an NHS employee and have recently taken my pension early then returned to work on reduced hours. I spent a great deal of time looking at all the options before making my decision.

At no time did I hear of the lump sum being taxed. I must admit that the possibility of further government changes in the future swayed my decision.

There have been major changes recently to the NHS pension scheme from the 1996 to the 2008 section. Information on this can be obtained from the NHS pension site.
cnile is offline
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT. The time now is 2:37 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 26 November 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile
  • RT @pauldavidmartin: @MartinSLewis Sony TV in @Argos_Online Black Friday sale £499 down to £299. Same TV is £289 on Amazon but not in the t?
  • Slightly starstruck meeting Gazza in the make up room at ITV, then heard one of the make up artists ask him "are you from Newcastle then?"
  • Before buying owt today ask yourself: Do I need it? Is it worth it? Have I checked if it's cheaper elsewhere? If any are no. Don't buy. RT

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.