State Pension and Personal allowance

Grumpy_chap

DairyQueen said:

squirrelpie said:

hugheskevi said:

subsequent cohorts will be deeper into income tax and the process will be normalised. 

I agree, though it fails the "least amount of hissing" test if a large number of pensioners have to actually make a tax payment every year rather than having it automatically collected in advance.

OH and I are 'hissing' so loudly that we are considering moving overseas. Most of us over-65s are well are aware when we are being scammed.

In what way are the over-65's being scammed?
Why "over-65's"?  I thought SPA was currently 66 and will become 68.
It seems beneficial to people of SPA age to benefit from a formula that results in growth of the SP amount.  If that income then grows above taxation thresholds, that is simple people of SPA age being treated in the same way as the remainder of the population.

af1963

It's a weird complaint. "You're increasing my pension so much that I'm moving into the band where I'll be due to pay a tiny amount of income tax."

Dazed_and_C0nfused

af1963 said:

It's a weird complaint. "You're increasing my pension so much that I'm moving into the band where I'll be due to pay a tiny amount of income tax."

Similar to those that hate the thought of higher rate tax even though they would have more income as a result.

Aretnap

If pensioners are angry that large increases in the state pension mean that it is in danger of rising above the personal allowance, I do have to say that one very obvious solution occurs to me...

xylophone

I trust that when you move overseas you will be happy that your pension is frozen

It ain't necessarily so....... depends where you go.

And the Basic (old) and full new SP currently increase under the Triple Lock ( additional state pension and "protected payment" increase by CPI).

https://www.gov.uk/state-pension-if-you-retire-abroad/rates-of-state-pension

BikingBud

xylophone said:

I trust that when you move overseas you will be happy that your pension is frozen

It ain't necessarily so....... depends where you go.

And the Basic (old) and full new SP currently increase under the Triple Lock ( additional state pension and "protected payment" increase by CPI).

https://www.gov.uk/state-pension-if-you-retire-abroad/rates-of-state-pension

I know that and likely the OP knows that but it does strike me as bizarre when everybody gets on the case of non-doms not paying UK tax, we continue to subsidise non-dom pensioners who similarly do not pay UK tax, yet expect he full benefits of the UK tax payer funded systems, including returning when they need NHS treatment or benefits.

In fact I find it quite farcical that people that left the UK over 40 years ago are still complaining that their pension was frozen when they left. 

Sounds like another good source for savings to me!

But perhaps we could wait to see where @DairyQueen feels she is being scammed and explain her plan. From her other recent thread it seems she feels it is OK to avoid tax yet complain when she is required to pay some.

badmemory

Well I am just grateful that my income is large enough to need to pay tax although I don't like simple assessment as so far it has not been correct.  What is more worrying is that the one for 2023-24 has still not arrived yet, so I'm worrying that they have stopped it without notification.  I did expect it to be late but not by 3 months.

Dazed_and_C0nfused

badmemory said:

Well I am just grateful that my income is large enough to need to pay tax although I don't like simple assessment as so far it has not been correct.  What is more worrying is that the one for 2023-24 has still not arrived yet, so I'm worrying that they have stopped it without notification.  I did expect it to be late but not by 3 months.

Stopped what 🤔

Frustrating though it may be you always get 3 months to pay a Simple Assessment liability so the later it's issued the more time the money needed to pay it can be in your bank account earning interest 😉

Qyburn

BikingBud said:

DairyQueen said:

OH and I are 'hissing' so loudly that we are considering moving overseas. Most of us over-65s are well are aware when we are being scammed.

I trust that when you move overseas you will be happy that your pension is frozen and not want your pension to increase by CPI?

Maybe that's the idea, move overseas to make sure their pensions don't increase enough to be taxed.

badmemory

Dazed_and_C0nfused said:

badmemory said:

Well I am just grateful that my income is large enough to need to pay tax although I don't like simple assessment as so far it has not been correct.  What is more worrying is that the one for 2023-24 has still not arrived yet, so I'm worrying that they have stopped it without notification.  I did expect it to be late but not by 3 months.

Stopped what 🤔

Frustrating though it may be you always get 3 months to pay a Simple Assessment liability so the later it's issued the more time the money needed to pay it can be in your bank account earning interest 😉

Sorry should have explained.  I spoke to the simple assessment line as I couldn't access my gateway account.  They told me there are no entries at all for 23-24.  No pension, no state pension & no taxable interest.  So I am feeling a little paranoid that they have decided I no longer exist & they will stop my state pension.  I have had nothing since the new tax code for this year which being a K code is not enough to take all the tax I owe so I should have a bill.  I was worried because I thought it might have got lost in the post & I was heading for penalties.  Not being able to access my gateway account did not help.  I couldn't open a new one because I already have one but I couldn't access the old one because I hadn't used it for so long they deleted it.  Sorry for the essay!