If RR is putting up income tax later this month, would it be wise to extract taxable pension?

michaels

Cobbler_tone said:

Treasury ‘insiders’ suggest the raid on the TFLS has been shelved. The 2p up/2p down seems a consistent theme, unless you pay 40% tax and NI will still apply.
Lead article from the Telegraph. Doctors and Teachers not happy. 
If that transpires I could consider a bigger TFLS but would wait for the brains to crunch the numbers. Probably hold fire to see what the subsequent chancellor reverses.

If they were planning a raid on the tfls they would surely want to deny it to minimise withdrawals prior to enacting it.

zagfles

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

m_c_s

Fiscal drag seems to be the main measure then. Everyone will be hit with higher taxes effectively including those on very low incomes and those on the new state pension. Hope both the HMRC website site and call centre helpline have the capacity to cope.

phlebas192

michaels said:

Cobbler_tone said:

Treasury ‘insiders’ suggest the raid on the TFLS has been shelved. The 2p up/2p down seems a consistent theme, unless you pay 40% tax and NI will still apply.
Lead article from the Telegraph. Doctors and Teachers not happy. 
If that transpires I could consider a bigger TFLS but would wait for the brains to crunch the numbers. Probably hold fire to see what the subsequent chancellor reverses.

If they were planning a raid on the tfls they would surely want to deny it to minimise withdrawals prior to enacting it.

Why? Large withdrawals of the TFLS as the result of a pre-announced change would lead to people paying tax on savings or investments outside of the pension wrapper resulting in an increase in tax over the next year or so. An immediate imposition would just lead to people not withdrawing from their pensions with, if anything, a reduction in tax receipts over the same period.

Hint: if you are short of money, give people the incentive to pay a smaller amount now than a larger one later.

Qyburn

zagfles said:

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

I'm disappointed. I think raising income tax would have been the right thing to do. I'm saying that as a taxpayer.

HedgehogRulez

Qyburn said:

zagfles said:

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

I'm disappointed. I think raising income tax would have been the right thing to do. I'm saying that as a taxpayer.

Same as all sensible minded peeps

westv

Qyburn said:

zagfles said:

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

I'm disappointed. I think raising income tax would have been the right thing to do. I'm saying that as a taxpayer.

It doesn't mean she won't extend the income tax bands freeze or reduce them.

Cobbler_tone

HedgehogRulez said:

Qyburn said:

zagfles said:

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

I'm disappointed. I think raising income tax would have been the right thing to do. I'm saying that as a taxpayer.

Same as all sensible minded peeps

Fear not. I’m sure you’ll get to pay some extra tax.

HedgehogRulez

Cobbler_tone said:

HedgehogRulez said:

Qyburn said:

zagfles said:

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

I'm disappointed. I think raising income tax would have been the right thing to do. I'm saying that as a taxpayer.

Same as all sensible minded peeps

Fear not. I’m sure you’ll get to pay some extra tax.

I love tax. Very even minded me.

BikingBud

westv said:

Qyburn said:

zagfles said:

Not happening according to the BBC Rachel Reeves backs off from plans to raise income tax rates in Budget - BBC News 

I'm disappointed. I think raising income tax would have been the right thing to do. I'm saying that as a taxpayer.

It doesn't mean she won't extend the income tax bands freeze or reduce them.

Oh no she won't!