FT - Tories to raid tax relief pensions

greggymagic

JoeCrystal said:

Paul_Herring said:

You're there to be taxed to pay for other married, unhealthy people's children...  

Indeed, the singletons living on their own are the one paying through the nose. I am rather annoyed by budget's pensions tax breaks for higher earners are now more generous

Not exactly how tax works though is it.....

You should be happy - you get 80 pence for every pound earned whereas higher rate tax payers only get 60 pence above the hrt threshold. 

zagfles

So pretty boring on pensions then, other than the taper threshold increase for high earners. Nothing on the "net pay trap", other than a "call for evidence" and a committment to review. LTA up with CPI as expected to £1,073,100

Malthusian

greggymagic said:

JoeCrystal said:

Paul_Herring said:

You're there to be taxed to pay for other married, unhealthy people's children...  

Indeed, the singletons living on their own are the one paying through the nose. I am rather annoyed by budget's pensions tax breaks for higher earners are now more generous

Not exactly how tax works though is it.....

You should be happy - you get 80 pence for every pound earned whereas higher rate tax payers only get 60 pence above the hrt threshold. 

It's actually 54 pence and 45 pence respectively for most pounds of income in those brackets. Solidarity comrades.

Paul_Herring

You should be happy - you get 80 pence for every pound earned whereas higher rate tax payers only get 60 pence above the hrt threshold. 

Lessee, for every pound you earn gross above the personal allowance, your employer has to fork out £1.138, of which 13.8p goes to the government, the rest to your payslip.

After that you then pay another either 20p IT+12p NI or 40p IT+2p NI

So, that's either 1-(13.8+20+12)/113.8 = 59.7p, or 1-(13.8+40+2)/113.8 = 50.9p for every pound spent on your wages.

Plus further contortions, as Malthusian suggests above, for even higher earners once they get past £100K.

Malthusian

Paul's numbers are correct and mine were oversimplified (i.e. lazily wrong).

JoeCrystal

greggymagic said:

Not exactly how tax works though is it.....

You should be happy - you get 80 pence for every pound earned whereas higher rate tax payers only get 60 pence above the hrt threshold. 

Ah, I was more thinking about the fact a single person household having to pay more. At the same time, it is cheaper for a couple/family household since they can take advantage of two personal allowances plus the cost of mortgage/rents/council taxes/bills is less expensive per person. Sorry about the confusion. Besides, I like tax relief on my pension contribution anyway so will keep taking advantage of it!

DairyQueen

Mick70 said:

 but if they take away or reduce relief they take away some of the incentive to pay into a pension and with an ageing population that would make little sense ,  

Ah, but that little problem may be solved by the mortality stats suggested by Covid-19. Just think of the savings in state pensions and NHS treatment. Plus the bonus to DB pensions, and the fiscal impact of IHT-free pension pots being inherited prematurely.

Just about everyone will be quids-in except.... ahem.... those who succumb (of whom most will be aged 60+).  
(Where is the 'eek' emoji when you need it?).

Paul_Herring

(Where is the 'eek' emoji when you need it?).

Found one..., Or could just use

zagfles

JoeCrystal said:

greggymagic said:

Not exactly how tax works though is it.....

You should be happy - you get 80 pence for every pound earned whereas higher rate tax payers only get 60 pence above the hrt threshold. 

Ah, I was more thinking about the fact a single person household having to pay more. At the same time, it is cheaper for a couple/family household since they can take advantage of two personal allowances plus the cost of mortgage/rents/council taxes/bills is less expensive per person. Sorry about the confusion. Besides, I like tax relief on my pension contribution anyway so will keep taking advantage of it!

Well of course, if you consume less per person it's cheaper overall! Sharing accomodation is no different from sharing a bottle of wine, sharing a car etc.  In fact single people are subsidised because they pay less property tax (council tax) for the same property than a couple. What next, lower car tax if you don't share a car, lower excise duties if you don't share your bottle of wine, etc :-;

Mistermeaner

I guess society should to some measure reward those who contribute the most to the collective good - incentivising a single and child free existence is unlikely to be beneficial to the human race in the long term 

all hail the mighty tinder