New Capita-run Civil Service Pension Scheme - problems (what a surprise!)

horsewithnoname

if personal allowance went up with at least inflation each year it would help keep people out of the tax system, but by continuing the freeze that the previous government instigated has led to this

horsewithnoname

a colleague got their calculation payslips etc but no payment

Capita had to admit that they’d paid it to someone else. Absolute garbage

xylophone

Capita had to admit that they’d paid it to someone else.

Is this the nadir of what appears to be a truly dysfunctional organisation?

daisy_1571

cheers qrizb and hugheskevi, you (me) learn something new every day 😀 I knew there would be some reason but it just seemed logical to me

I was basing it on new full state pension being currentl just over the never increasing personal allowance. I had no idea state pension was £24k for some people. Wish it was going to be that for me when I finally get it.

so if all these millions of people already are paying tax on their state pension, do they all do it via self assessment?

QrizB

so if all these millions of people already are paying tax on their state pension, do they all do it via self assessment?

Some will be under Self Assessment due to having other taxable income that's not PAYE, but I imagine many are under Simple Assessment.

https://taxconfident.campaign.gov.uk/tax-basics/ways-we-collect-tax/simple-assessment/

flaneurs_lobster

so if all these millions of people already are paying tax on their state pension, do they all do it via self assessment?

Only if they had other income streams that made things more complicated, otherwise a Simple Assessment would give rise to a tax demand each year.

xylophone

A person might have a state pension under PA but also an occupational pension which takes him over PA - for example SP £11000 per annum and OP £3000 per annum.

In this case tax due is deducted from OP via tax code on OP.

daisy_1571

yeah the tax coming off all the differing private pensions, including adding in any element of state pension above the personal allowance, works fine.

Issue is if someone has, as mentioned above, solely state pension but that state pension is more than personal tax free allowance (there seems to be some people getting as much as £24,000 on state pension which I had no idea about) they haven't, up till now, been taxed at source.

daisy_1571

Hugheskevi I woke up this morning thinking about all this 😆

you did that personal allowance rising in line with inflation since long times ago calculatio or link- is there any figures been calculated showing where the personal allowance would be if it had continued to rise in typical fashion each year since they froze it? Maybe Martin has mentioned it on a programme but I cant remember the figures if he did

dxx

hugheskevi

https://forums.moneysavingexpert.com/discussion/comment/82049615#Comment_82049615

The chart is just from my own spreadsheets.

If the Personal Allowance was increased by CPI from April 2021 when it reached its current value of £12,570, it would be £16,258 as at May 2026. If it was uprated by earnings, it would be close to £17,000.

By the time the current freeze ends in 2031, it should be roughly back to the level it was in 2010 in either price or earnings terms. So rather than a nice boring price or earnings link every year, we got to enjoy a decade of ramping it up massively and then freezing it for a decade, with neither making much sense.