"Average Earnings Growth" and triple lock

SnowMan

Re the issue of the full new state pension being more than the personal allowance from April 2027 this was in the budget

https://assets.publishing.service.gov.uk/media/6926eb102a37784b16ecf525/E03444720_Budget_2025_Web_Accessible.pdf

4.167 State Pension and Simple Assessment – The government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28 if the new or basic State Pension exceeds the Personal Allowance from that point. The government is exploring the best way to achieve this and will set out more detail next year.

GunJack

So much for we're all in it together.....

SnowMan

Their statement seems very vague. It isn't even obvious that they are going to write off the small amount of tax due in the post 6th April 2016 SPA scenario. 

And someone who reached SPA before 6th April 2016 who is only receiving the basic state pension isn't going to exceed the personal allowance, so do they mean someone who has SERPS/S2P also, and what if they already exceed the current personal allowance?

MeteredOut

SnowMan said:

Their statement seems very vague. It isn't even obvious that they are going to write off the small amount of tax due in the post 6th April 2016 SPA scenario. 

And someone who reached SPA before 6th April 2016 who is only receiving the basic state pension isn't going to exceed the personal allowance, so do they mean someone who has SERPS/S2P also, and what if they already exceed the current personal allowance?

Agreed. I'd suggest there's no strong indication they are going to write off the small amount of tax

"...so that they do not have to pay small amounts of tax via Simple Assessment..."

not

"...so that they do not have to pay small amounts of tax ..."

So, I suspect they are looking for a way to collect that tax without the receiver having to do a Simple Assessment.

QrizB

Sounds like they're planning a meaty contract for Oracle to bring the state pension under PAYE

SnowMan

QrizB said:

Sounds like they're planning a meaty contract for Oracle to bring the state pension under PAYE

LITRG have proposed state pension should come under PAYE
https://www.litrg.org.uk/press-release/litrg-give-state-pension-its-own-paye-scheme

MeteredOut

QrizB said:

Sounds like they're planning a meaty contract for Oracle to bring the state pension under PAYE

I notice they've got given themselves a deadline, which lends weight to that theory. 

Eldi_Dos

GunJack said:

So much for we're all in it together.....

Apparently there used to be a special age related allowance, something like that may be along the lines being considered to save having to chase small amounts of tax.

Silvertabby

QrizB said:

Sounds like they're planning a meaty contract for Oracle to bring the state pension under PAYE

Suspect it could only work if HMRC give DWP a tax code to apply to the State pension.  Sounds needlessly expensive, when we already have a working system in place.  

GunJack

Silvertabby said:

QrizB said:

Sounds like they're planning a meaty contract for Oracle to bring the state pension under PAYE

Suspect it could only work if HMRC give DWP a tax code to apply to the State pension.  Sounds needlessly expensive, when we already have a working system in place.  

Good idea, but I suspect that the DWP system is so old and held together with string and old chewing gum adding PAYE to it would prove nigh on impossible 🤣🤣🤣🤣