ML can you sort this unfair situation out please

ROG

Where benefits are concerned the NETT of total income is taken but not where the state pension is concerned

Where state pension is the only source of taxable income it is the GROSS which is taken not the nett

This means any benefits are reduced and in my case this year I have an annual benefit loss of £112.71 which could have been put towards paying the HMRC this coming April

Private pensions have the nett used not the gross so why is there a different rule for the state pension?

freesha

You know you're not speaking direct to ML on here, right?

Flugelhorn

I am not sure I understand - if it is the only source of taxable income then would there be any tax on it?

ROG

Flugelhorn said:

I am not sure I understand - if it is the only source of taxable income then would there be any tax on it?

gave wife 10% this year so now my state pension is higher than my allowance but this situation is going to be the norm for many after April 2027 

Was hoping someone on here could inform ML of this unfair situation!

mebu60

ROG said:

Flugelhorn said:

I am not sure I understand - if it is the only source of taxable income then would there be any tax on it?

gave wife 10% this year so now my state pension is higher than my allowance but this situation is going to be the norm for many after April 2027 

Was hoping someone on here could inform ML of this unfair situation!

Do the maths and reclaim your 10% if that would be the better option.

No-one on here is likely to be able to inform ML of anything but you could write to his team at martinlewis@itv.com though be prepared for it not to become a priority for them. 

NedS

ROG said:

Where benefits are concerned the NETT of total income is taken but not where the state pension is concerned

Where state pension is the only source of taxable income it is the GROSS which is taken not the nett

This means any benefits are reduced and in my case this year I have an annual benefit loss of £112.71 which could have been put towards paying the HMRC this coming April

Private pensions have the nett used not the gross so why is there a different rule for the state pension?

Which benefit are you taking about?

For Universal Credit, only earned income is taken into account NET of tax. Unearned income (including any pension income) is treated GROSS of any tax. This has always been the case and is written in the UC legislation that way.

If they are using net amounts for private pensions (on UC), then they are doing it wrong as all pension income should be fully taken into account (gross).

If you do not agree with the law, you should contact your MP as they have the power to change it, not Martin Lewis.

ROG

Forget my personal circumstances and look at the bigger picture
Benefits affected are housing benefit and council tax support - they are the ones I know are - there may be others

If the state pension is taxed as there is no other income then the gross is taken for income meaning those benefits are reduced and then a tax bill from HMRC is received at the end of the year
That means over a year that person can lose twice - is that fair?

By taking the nett of the state pension would mean the benefits uplift would pay for the tax bill leaving the person about level financially

peteuk

ROG said:

Forget my personal circumstances and look at the bigger picture
Benefits affected are housing benefit and council tax support - they are the ones I know are - there may be others

If the state pension is taxed as there is no other income then the gross is taken for income meaning those benefits are reduced and then a tax bill from HMRC is received at the end of the year
That means over a year that person can lose twice - is that fair?

By taking the nett of the state pension would mean the benefits uplift would pay for the tax bill leaving the person about level financially

This forum is about helping people not discussing policy and politics.   So by saying forget my circumstances means your not hear to ask for help.  Thread reported as against policy.