Pensions taxable

Silvertabby

PaulDesmond said:

Okay. I am not interested in the posting of last year. As molerat pointed out "There are going to be a lot more people dragged into the tax system." But the freesing of the thresold is going to upset a lot of pensioners who may note want to vote for the concervatives at the next election.  Nobody likes paying tax.

Personally, I'd much rather be a tax paying pensioner than have to subsist on less than £12,570 per year.  After all, 80% of something is a lot more than 100% of nothing.

Plus, to be fair, if the personal tax allowance had only increased in line with inflation since 2010, instead of being given at least a couple of big boosts, then it will have only just reached the current rate.  This way, we've had the benefit of the higher rate for a few years now.

dunstonh

Okay. I am not interested in the posting of last year. As molerat pointed out "There are going to be a lot more people dragged into the tax system." But the freesing of the thresold is going to upset a lot of pensioners who may note want to vote for the concervatives at the next election.  Nobody likes paying tax.

On the other hand, low earners in the UK pay some of the lowest tax in Europe.     In fact, low earners don't pay enough.   They should be taxed more but we have this stupid mindset that low earners dont want to pay tax and want to drive high earners out of the UK rather than have them pay tax that allows low earners to pay less tax.

molerat

dunstonh said:

Okay. I am not interested in the posting of last year. As molerat pointed out "There are going to be a lot more people dragged into the tax system." But the freesing of the thresold is going to upset a lot of pensioners who may note want to vote for the concervatives at the next election.  Nobody likes paying tax.

On the other hand, low earners in the UK pay some of the lowest tax in Europe.     In fact, low earners don't pay enough.   They should be taxed more but we have this stupid mindset that low earners dont want to pay tax and want to drive high earners out of the UK rather than have them pay tax that allows low earners to pay less tax.

With the Scottish government taking it to new levels.

xylophone

In fact, low earners don't pay enough. 

What do you regard as a low annual income?

You surely aren't suggesting that a person earning only £12,570 a year should pay tax?

af1963

xylophone said:

In fact, low earners don't pay enough. 

What do you regard as a low annual income?

You surely aren't suggesting that a person earning only £12,570 a year should pay tax?

It's relatively recently that people on £12K were taken out of paying income tax. Tax allowance was increased under the 2010 coalition government I think.  Used to be about half that amount as the threshold.

Low earners do of course pay other taxes. VAT & council tax, duties on fuel tobacco and alcohol, and others.