Government Tax my Sister In laws pension

Ladywriter1968

Andy_L wrote: »

She has worked 45 years, did she pay the full NI "stamp" for those 45 years or the reduced married womans rate? If the latter then she may well not be entitled to the full state pension.

You receive tax relief on the money paid into a pension, the quid pro quo is that you pay tax on the money comeing out of it.

I did not realise there was a reduced womans rate of NI, I thought it was fixed same for everyone male or female depending on what they earned etc.

I have heard there is 3 rates I think to NI, you probably know more then me, I seem to know less then I thought after reading this. So this means that any married women is put on the reduced rate thus not receive a full state pension, maybe they should let the woman choose for herself then otherwise she .
suffers when she retires.

What I mean is, give her a choice of what rate to pay, if she wants to pay reduced then tell her she wont get full pension. Or just have the same rate for both sexes so at least people know where they stand when they retire.

Ladywriter1968

CLAPTON wrote: »

best to get thet facts

how much is her state pension
how much is the work pension

what is her taxcode for the work pension
how old is she
when did the state pension start?

i dont know all the answers to your questions above, but I will put your questions to her, then she can work it out. I can only give you bits

This is a copy and paste of part of her email below.

it is only 85 pounds a week. And my company pension was £423 a mth. I am now being stopped £53 a mth tax. in April my state pension will be going up to £95 a week I said oh yes and you will stop me more penison,

Loughton_Monkey

RichandJ wrote: »

Good job bendix is on holiday..

Yes. Bendix is relaxing in Thailand apparently. I must remember to highlight this one for him.

I think he was planning to retire early. But this will absolutely shock him - when he learns, from this thread, that the Government has suddenly started charging pensioners tax when they receive income more than the limit.

I'm convinced Bendix thought that because you've paid tax up until you retire, you never pay any more tax.

jennifernil

If she has £9496 per year, she will be paying tax.

She has to count ALL income, bank interest, pension, earnings.

Pension is just income, and all income counts for tax.

Ladywriter1968

amersall wrote: »

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnBenefitsPensionsAndMaintenance/DG_172143
Does this help?.
This has always been the case. My dad died in 1970 and my mum recieved widowed mothers allowance, when she got a job, they added the wage to her widowed mothers allowance and she was taxed on the whole amount. When she went from widowed mothers allowance (as we were past the age for her to get this) , she got widows pension (think this was to do with my dads earnings, but not too sure) and this was added to her wage and taxed as well, as did the state pension when she was eligible as she was still working. So my mum paid tax all of the time from 1970 to 2008.I think this is unfair, as when you have paid tax all your working life, then you shouldnt be taxed on the state pension as you have worked towards being eligible for this.

I do agree with you on this

Ladywriter1968

This message is for: Loughton Monkey:McKneff:RichandJ: I don't know if you people are being sarcastic or what, but I put this up here to try and help my sister in law really. If you cant give construction criticism then dont give any.

I am trying to help my sister in law with her problem and its a shame that more people cant be more curtious out there, kind and helpful, rather then wanting to shove down anyone who is not as so intelligent or informed as they may be on these subjects. or dont know much about the subject, I just bet you were the school bullies as well.

If I had misread your threads then I apologise, but your unkind words does not help my sister in laws situation at all. We are not all tax experts are we. Plus all it does is cause bad feeling on these sites as well and rows and gets no where. RIGHT.

Thank you to all the others that have been kind and helpful on here and I forwarded your links to her as well. Plus some I found myself online DWP etc. At least there are still come kind people that are willing to help.

jem16

Ladywriter1968 wrote: »

I did not realise there was a reduced womans rate of NI, I thought it was fixed same for everyone male or female depending on what they earned etc.

I have heard there is 3 rates I think to NI, you probably know more then me, I seem to know less then I thought after reading this. So this means that any married women is put on the reduced rate thus not receive a full state pension, maybe they should let the woman choose for herself then otherwise she .
suffers when she retires.

What I mean is, give her a choice of what rate to pay, if she wants to pay reduced then tell her she wont get full pension. Or just have the same rate for both sexes so at least people know where they stand when they retire.

Married Women's reduced rate of NI was abolished in 1977.

Many women chose to pay the small stamp as they earned very little in part time jobs which usually fitted in with child care. However it wasn't compulsory - they did have a choice.

http://www.hmrc.gov.uk/ni/reducedrate/marriedwomen.htm

Ladywriter1968

Mikeyorks wrote: »

You've been reading my thoughts (and posts).

Overall, tax is excruciatingly complex ..... but not at the level of the average individual. Where checking your Coding Notice and making sure the employer is operating it - is as tough as it gets.

Agreed about tax, it is very complex and not all individuals can understand it, my sister in law is in her 60's and a couple of years before her job closed down, she had to learn a new computer system, she said, how am I supposed to learn all this at my age. she has a sick husband to and heart probs. Not everyone is good at maths either to be able to work it all out themselves. So thanks for that. tax is complex.

Ladywriter1968

jem16 wrote: »

Married Women's reduced rate of NI was abolished in 1977.

Many women chose to pay the small stamp as they earned very little in part time jobs which usually fitted in with child care. However it wasn't compulsory - they did have a choice.

http://www.hmrc.gov.uk/ni/reducedrate/marriedwomen.htm

thank you for your help, I will send my sister in law the link about this.

CLAPTON

Ladywriter1968 wrote: »

i dont know all the answers to your questions above, but I will put your questions to her, then she can work it out. I can only give you bits

This is a copy and paste of part of her email below.

it is only 85 pounds a week. And my company pension was £423 a mth. I am now being stopped £53 a mth tax. in April my state pension will be going up to £95 a week I said oh yes and you will stop me more penison,

OK
surely you know her age?

anyway

her income state pension is 85 x 53 = 4505 per annum
her works pension = 423 x 12 = 5076 per annum
total = 9581 per year
less tax free allowance of 6475 assuming she is less than 65 years old
so that leaves 3,106 taxed at 20% = 621 per annum
or 52 per month