Sorry but another pension/tax code question!

german_keeper

XzavierWalnut said:

Silvertabby said:

XzavierWalnut said:

It's a little trick the government do not tell anyone, but when you get your state pension the full amount is taken off your tax code.

It's not a 'little trick', it's long established normal procedure.

Let's say it's not very well advertised then.

What would you have the government do? Release weekly press statements to confirm that state pension is taxable income? Maybe take out regular full page advertisements in the national press? Would they also do similar regarding all other forms of income whether taxable or non taxable? 

Silvertabby

XzavierWalnut said:

Silvertabby said:

XzavierWalnut said:

It's a little trick the government do not tell anyone, but when you get your state pension the full amount is taken off your tax code.

It's not a 'little trick', it's long established normal procedure.

Let's say it's not very well advertised then.

This information has always been readily available.  Is this another case of 'assumptions'?  ie, "my granny never paid tax on her State pension, so assume that the State pension must be tax free, so assume no need to check"?

XzavierWalnut

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

dunstonh

XzavierWalnut said:

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

Better to earn enough to pay tax than earn less and pay no tax.

Silvertabby

dunstonh said:

XzavierWalnut said:

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

Better to earn enough to pay tax than earn less and pay no tax.

Exactly.  Our joint income tax bill is our biggest monthly outgoing, but we'd much rather be in this position than have to live on just £12,570 each.

XzavierWalnut

dunstonh said:

XzavierWalnut said:

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

Better to earn enough to pay tax than earn less and pay no tax.

Agree, but I retired at 59 earlier this year, after working since I was 16, and have no plans to pay anymore income tax.
This all seems a bit tit for tat.
The OP was questioning why they were no better off.
My wife was semi retired for several years and even when she was getting her state pension she was paying 40% tax.
What is the point? 

XzavierWalnut

PS, so basically she was working 3 days a week for the NHS, but was really only earning about 1.5 days of money after tax. 

eastcorkram

XzavierWalnut said:

dunstonh said:

XzavierWalnut said:

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

Better to earn enough to pay tax than earn less and pay no tax.

Agree, but I retired at 59 earlier this year, after working since I was 16, and have no plans to pay anymore income tax.
This all seems a bit tit for tat.
The OP was questioning why they were no better off.
My wife was semi retired for several years and even when she was getting her state pension she was paying 40% tax.
What is the point? 

So, are you living on less than £13k a year?

Dazed_and_C0nfused

eastcorkram said:

XzavierWalnut said:

dunstonh said:

XzavierWalnut said:

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

Better to earn enough to pay tax than earn less and pay no tax.

Agree, but I retired at 59 earlier this year, after working since I was 16, and have no plans to pay anymore income tax.
This all seems a bit tit for tat.
The OP was questioning why they were no better off.
My wife was semi retired for several years and even when she was getting her state pension she was paying 40% tax.
What is the point? 

So, are you living on less than £13k a year?

If you have the right types of income and a spouse who has applied for Marriage Allowance you can have taxable income of £22,450 at the moment with absolutely no income tax to pay 😄

QrizB

dunstonh said:

XzavierWalnut said:

WOW, I'm astounded.
Did not realise how keen folks are to pay income tax.

Better to earn enough to pay tax than earn less and pay no tax.

Exactly this.

Earning enough to pay income tax means you're earning enough to pay income tax