Pension tax raid being touted again

Black_Cat2

JoeCrystal said:

Black_Cat2 said:

to encourage individuals to remain in work, while also helping to ensure pension savings provide for later life the state pension age will increase from 55 to 57 in 2028.

I read the same thing in the FT just now. I would think that what they meant by encouraging the individuals to remain in work is to keep paying income taxes on their earnings! 

Lol, makes me sound posh if it's in the FT,  ofc I read it all the time 🤣

zagfles

Black_Cat2 said:

JoeCrystal said:

Black_Cat2 said:

to encourage individuals to remain in work, while also helping to ensure pension savings provide for later life the state pension age will increase from 55 to 57 in 2028.

I read the same thing in the FT just now. I would think that what they meant by encouraging the individuals to remain in work is to keep paying income taxes on their earnings! 

Lol, makes me sound posh if it's in the FT,  ofc I read it all the time 🤣

I would hope the FT didn't say "state pension age". I know the standard of journalism have gone downhill, but not that far from a decent paper surely...

Black_Cat2

My email says that and it's not from the FT just to clear that up 👍

zagfles

Black_Cat2 said:

My email says that and it's not from the FT just to clear that up 👍

I would ignore whoever it's from then, possibly some sort of scam?

alfmurph

Remember they need to have 15 billion for when back to 60 win their legal case .

brewerdave

alfmurph said:

Remember they need to have 15 billion for when back to 60 win their legal case .

Thought the true cost would be over £200 billion??

Paul_Herring

There’s no real justification for not combining income tax and NI into a single income tax

It would be portrayed as the next granny tax, since their pensions would then be taxed at 32%, instead of 20%. Unless it's offset by bringing back the pensioner/age-related tax allowance (but only for pension income, not employment income)...

nigelbb

Mickey666 said:

zagfles said:

Mickey666 said:

How about removing the cap on NI contributions?  When most other taxes seem to be progressive,  I’ve never quite understood why the NIC rate REDUCES for higher earners?  

Because the annualised threshold co-incides with higher rate tax, so combined with income tax it is generally progressive, from 32% to 42%. But there are some anomilies to do with income tax being assessed over the year and NI over the pay period...

It’s really just paying politics isn’t it?  There’s no real justification for not combining income tax and NI into a single income tax, but governments like to have a complicated tax system because it gives them something to fiddle around with come budget time.

National Insurance isn’t just another income tax though as it is that very rare example of an hypothecated tax (the TV licence fee is the only other one I can think of). NI contributions are paid into the NI fund which is used for paying pensions & a few other work related benefits line JSA). 

jimi_man

nigelbb said:

Mickey666 said:

zagfles said:

Mickey666 said:

How about removing the cap on NI contributions?  When most other taxes seem to be progressive,  I’ve never quite understood why the NIC rate REDUCES for higher earners?  

Because the annualised threshold co-incides with higher rate tax, so combined with income tax it is generally progressive, from 32% to 42%. But there are some anomilies to do with income tax being assessed over the year and NI over the pay period...

It’s really just paying politics isn’t it?  There’s no real justification for not combining income tax and NI into a single income tax, but governments like to have a complicated tax system because it gives them something to fiddle around with come budget time.

National Insurance isn’t just another income tax though as it is that very rare example of an hypothecated tax (the TV licence fee is the only other one I can think of). NI contributions are paid into the NI fund which is used for paying pensions & a few other work related benefits line JSA). 

And the NHS. 

michaels

nigelbb said:

Mickey666 said:

zagfles said:

Mickey666 said:

How about removing the cap on NI contributions?  When most other taxes seem to be progressive,  I’ve never quite understood why the NIC rate REDUCES for higher earners?  

Because the annualised threshold co-incides with higher rate tax, so combined with income tax it is generally progressive, from 32% to 42%. But there are some anomilies to do with income tax being assessed over the year and NI over the pay period...

It’s really just paying politics isn’t it?  There’s no real justification for not combining income tax and NI into a single income tax, but governments like to have a complicated tax system because it gives them something to fiddle around with come budget time.

National Insurance isn’t just another income tax though as it is that very rare example of an hypothecated tax (the TV licence fee is the only other one I can think of). NI contributions are paid into the NI fund which is used for paying pensions & a few other work related benefits line JSA). 

So are you saying NI rates are only adjust ro reflect changes in these hypothecated costs - where is the roll on the floor laughing smiley when you need it.  It is clearly just  apart og general taxation.

Next you will be coming out with the old chestnut that it gains you entitlement to benefits such as a full pension - well since I was 48 I have had an entitlement to the full state pension so none of the NI I pay now makes one iota of difference to my pension entitlement.