Budget 2018

mgdavid

Thrugelmir wrote: »

As usual in the small print there's a sting. Or some might say a clever wheeze. Rise in higher rate threshold is tempered by change in NI threshold. Rather than 2% , NI will be 12% up to £50k. £340 therefore gets clawed back. Payable even if one contributions to a pension scheme. (Salary Sac aside).

Thank goodness non-working pensioners don't pay NI !

Triumph13

mgdavid wrote: »

Thank goodness non-working pensioners don't pay NI !

Shh! They'll hear you!

Paul_Herring

mgdavid wrote: »

Thank goodness non-working pensioners don't pay NI !

Yet.

I'm still waiting for the next granny tax to come out, 'Disguised' as 'simplification of the tax system by merging NI and IT.'

Not that I'm being cynical or anything..

Spreadsheetman

mgdavid wrote: »

Thank goodness non-working pensioners don't pay NI !

Can't be long though. I imagine the trojan horse will be a social care component for over-40s or similar and after that the net always widens.

woolly_wombat

mgdavid wrote: »

Thank goodness non-working pensioners don't pay NI !

Workers who have reached state pension age don't pay either.

Kerchiiiing!

https://www.gov.uk/tax-national-insurance-after-state-pension-age/stopping-paying-national-insurance

At State Pension age:

• you stop paying Class 1 and Class 2 contributions, even if you’re still working
• you still have to pay Class 4 contributions if you have taxable profits from the year you reach State Pension age - the next year, you’ll be exempt

kidmugsy

Silvertabby wrote: »

As very few women qualified for a pension in their own right then, the change wasn't for their benefit - just their husband's.

There must have been plenty of strange marriages if getting the money to the husband earlier didn't benefit the wife.

kidmugsy

Thrugelmir wrote: »

As usual in the small print there's a sting. Or some might say a clever wheeze. Rise in higher rate threshold is tempered by change in NI threshold. Rather than 2% , NI will be 12% up to £50k. £340 therefore gets clawed back. Payable even if one contributions to a pension scheme. (Salary Sac aside).

An excellent change - one tedious complication that might otherwise have existed goes into the bin.