Budget no £1k increase in personal allowance for pensioners

twokcc

Personal allowance being increased from £6475 to £7475 for next tax year. Can't find any information that the age 65+ personal allowance is being increased from £9490 by £1000.


If its not all pensioners losing out on a £200 a year tax reduction but having to pay for VAT increase.
Thought we were all in this together!! but looks as if pensioners expected to make a relatively larger contribution than someone in employment- hope I've just missed the detail in the budget but fearing worse.


Anybody able to confirm.

roddydogs

Your (WE im an OAP) are lucky were still getting Winter Fuel Allowance, I was expecting that to go or be means tested. If you spend most of your money on Food/heating/rent, you will hardly pay any extra VAT anyway

JasonLVC

twokcc wrote: »

Personal allowance being increased from £6475 to £7475 for next tax year. Can't find any information that the age 65+ personal allowance is being increased from £9490 by £1000.


If its not all pensioners losing out on a £200 a year tax reduction but having to pay for VAT increase.
Thought we were all in this together!! but looks as if pensioners expected to make a relatively larger contribution than someone in employment- hope I've just missed the detail in the budget but fearing worse.


Anybody able to confirm.

The Budget documents only make reference to a £1,000 increase in personal allowances for those under the age of 65. There is no mention of an increase for those over 65.

I guess the re-linking of pensions to CPI indexation (or minimum of 2.5% increases under the triple lock offering) will compensate somewhat....so I don't think it is such a big burden on pensioners.

We are all in this together and everyone seems to have had a rise somewhere matched with a deduction elsewhere (ie, personal allowances up, but so is NI contributions, public sector pay freeze but £250 bonus for those earning less than £21k, etc).

Utilities are reduced rate VAT which hasn't changed, most foods are zero rated and rent/mortgages are not subject to VAT so the 'core' outgoings of the household are unaffected by the VAT increase, but one-off big purchases and of course petrol/diesel will be the main cost increases for every household.

monkeyspanner

Shouldn't that be under 66 if the state pension age is being put up?

As to we are all in this together I don't recall borrowing too much or putting my purchases on credit cards or using dubious Icelandic Savings accounts.

margaretclare

roddydogs wrote: »

Your (WE im an OAP) are lucky were still getting Winter Fuel Allowance, I was expecting that to go or be means tested. If you spend most of your money on Food/heating/rent, you will hardly pay any extra VAT anyway

The increase is only for the lower band i.e. for below 65, intended for the lower-paid workers to start paying tax at a higher level.

VAT also goes on electricity, gas, phone, water, petrol, clothes (except children's clothes).....

artha

twokcc wrote: »

Personal allowance being increased from £6475 to £7475 for next tax year. Can't find any information that the age 65+ personal allowance is being increased from £9490 by £1000.


If its not all pensioners losing out on a £200 a year tax reduction but having to pay for VAT increase.
Thought we were all in this together!! but looks as if pensioners expected to make a relatively larger contribution than someone in employment- hope I've just missed the detail in the budget but fearing worse.


Anybody able to confirm.

I posted elsewhere on this theme of what is happening to the age related allowance but didn't get a reply.

I think the question of what happens to the age related allowance may be clarified in the autumn review. It may just go up by inflation, as before

I think the lib/dem pre election proposal was that over the course of the parliament the personal allowance for everyone would increase to
£10,0000. Although I've not seen it officially written anywhere there is an implication that the age related personal allowance is being phased out through this process. The signs from the budget are that that the coalition may be adopting this lib/dem proposal.

If this happens then I would expect the clawback of age related allowance for those pensioners with a gross income of > ~23K will dissappear

lilac_lady

No tax till your income reaches £10000 seems a fair way to go whether you're over or under 65.

I'm pleased that the heating allowance is untouched and that (so far) the bus pass plan will continue (although I don't use it much at the moment.)

missile

I was sent these figures>



BENEFIT BRITISH OLD AGED PENSIONER and ILLEGAL IMMIGRANTS / REFUGEES LIVING IN BRITAIN


Weekly allowance £100 and £250


Weekly Spouse allowance £25 and £225


Additional weekly hardship allowance £0;00 and £100

TOTAL YEARLY BENEFIT £6,000 and £29,900




If I were a refugee, why would I look for work?

After all, the average pensioner has paid taxes and contributed to the growth of this country
For the last 40 to 60 years.

I find it hard to believe this is correct? Please tell me it is not

iris

margaretclare wrote: »

The increase is only for the lower band i.e. for below 65, intended for the lower-paid workers to start paying tax at a higher level.

VAT also goes on electricity, gas, phone, water, petrol, clothes (except children's clothes).....

I don't think we pay VAT on water.

JasonLVC

missile wrote: »

I was sent these figures>



BENEFIT BRITISH OLD AGED PENSIONER and ILLEGAL IMMIGRANTS / REFUGEES LIVING IN BRITAIN


Weekly allowance £100 and £250


Weekly Spouse allowance £25 and £225


Additional weekly hardship allowance £0;00 and £100

TOTAL YEARLY BENEFIT £6,000 and £29,900




If I were a refugee, why would I look for work?

After all, the average pensioner has paid taxes and contributed to the growth of this country
For the last 40 to 60 years.

I find it hard to believe this is correct? Please tell me it is not

Could you not just remove the phrase "illegal immigrant" and replace it with "anyone on benefits in the UK"?

I doubt the figures you've presented are accurate and those figures show cannot truly correlate becuase they reflect two different things. A pension is not the same as benefits or a salary and those figures don't detail things like the £££ a newly pregnant mother gets from the government (now scrapped), the free laptops given to poorer families, etc. It appears those figures are designed to invoke a racist reaction rather than be actually meaningful in anyway.

JasonLVC

iris wrote: »

I don't think we pay VAT on water.

Yes, domestic water is zero rated. Utilities are at the redcued rate but that rate isn't going up so no change at all for everyone who uses gas/electric/water.