Tax - Pensioner Tax question

RobO959

Dear All
Many thanks, the reason for this occurrence is now clear. 
It seems that there is no plan by the Govt to address the failure of the system for the low paid pensioners caught in the trap between "the rich" [40% Tax, a dream away!] and the reality of some areas of the UK where one has just a wee bit too much to access any form of benefits.

Dazed_and_C0nfused

RobO959 said:

Dear All
Many thanks, the reason for this occurrence is now clear. 
It seems that there is no plan by the Govt to address the failure of the system for the low paid pensioners caught in the trap between "the rich" [40% Tax, a dream away!] and the reality of some areas of the UK where one has just a wee bit too much to access any form of benefits.

Not too long now till you can have your input at the next general election.

RobO959

Indeed ~ local next week .... just to make sure I haven't forgotten and then the GE .... I'm guessing there will be all manner of sweeteners during the run-up.  The outcome will be interesting!! 

djmikeyt

Hi. I have a private pension which pays £24,919/annum plus state pension paying £9,257 so a total annual income of £34,176. I've been offered a short term job from my old employer. How much more can I earn this financial year before paying 40% tax? Is it as simple as subtracting £34,176 from the £50,271 government threshold (so I can still earn £16,095?) or more complicated than that. Apologies if it's a daft question! 

Dazed_and_C0nfused

Are you Scottish resident for tax purposes?

If not £16,095 would normally put you £1 into the higher rate bracket.

Are you 100% certain you have the correct State Pension amount?  Tax and State Pension seems to cause a lot of confusion, a common mistake is multiplying your (4 weekly) award by 12 to get the annual amount.

MarzipanCrumble

I am a 40+% tax payer and a pensioner.  I worked longer to build up my pension (10% - thank you) just to make sure I did not suffer stress about how I would afford to live if interest rate changed (which it has done by rising several times during my lifetime).  I have luckily DB pensions both from my deceased OH and from working myself.  

All of this is 'luck' not planning.  Well not planning until I reached about 55, then we did - plan.  So never too late for you out there.  We got IFA advice.  And lucked out.