New tax allowance

loulou41

Just wonder how many of us pensioners will be worse off when the new tax allowance is introduced. Personally, iI will be worse off every month since my pension is below 15k? Thanks

seven-day-weekend

Do you mean the abolition of the 10% rate?

If so, we are going to be worse off - doubly so because we live in Spain and get paid in Sterling and the exchange rate is really bad at the moment.

Between the tax and the exchange rate we will definitely lose income.

moonrakerz

seven-day-weekend wrote: »

Do you mean the abolition of the 10% rate?

If so, we are going to be worse off - doubly so because we live in Spain and get paid in Sterling and the exchange rate is really bad at the moment.

Between the tax and the exchange rate we will definitely lose income.

I do wish people wouldn't say the 10% rate has been abolished - it hasn't - it has been doubled to 20 % !!!!

EdInvestor

margaretclare wrote: »

Personal tax allowances for older people have actually gone up. I received my Notice of Coding this week, and for 2008/9 I have a personal tax allowance of £9030 rather than £7550 in the current tax year.

It should further rise to around 10k the following year. So that's 20k of tax free money for a couple over 65 in the future, much improved.

The people who are going to be adversely affected will be those who're retired but under 65, because they won't benefit from those higher personal allowances.

Indeed so.It's actually going to be a very big gap by next year.

Roll on the nationwide free bus travel to compensate....

sorted_2

I come in the trap of under 65, because my personel pension takes me over the limit, then no pension credit. I get a bit cross sometimes because if I had'nt saved then I would have been better off.
Only another 5 yrs to go but no help just now

seven-day-weekend

My husband will be worse off as his Teachers' Pension is above his tax allowance and he is retired aged 59.

I personally will be no worse off as I do not have to pay any tax....but that is because at the moment I have no income.......

So as a couple we will be worse off.

tanith

Reading with interest as it seems I will also be worse off as I am retired at 58 with a small occupational pension.. poor old hubby is still working for another 8yrs so he will have to keep in the manner I have become accustomed to...:rotfl: as I assume I will be paying more tax? How will it actually affect me?

jennifernil

We will be worse off too. No higher allowance for me next year as I am not even 60 yet, but I will get the extra (very small) pension OH gets for me as mine from December, and that plus interest on our savings (in my name) will take me over the tax free limit. So I will be paying 20% on that rather than 10%.

OH has too much pension (state + occupational) for the Age Allowance, so overall we will be worse off by a few hundred pounds.

Trying_to_be_good

jennifernil wrote: »

and that plus interest on our savings (in my name) will take me over the tax free limit. So I will be paying 20% on that rather than 10%.

I just checked the HMRC website (http://www.hmrc.gov.uk/budget2007/bn01.htm) and it says:
The starting rate will be removed for earned income and pensions but will continue to be available for savings income and capital gains. There are no changes to the rates applicable to dividends.

So you could still only be paying 10% on savings interest?

chesky369

I was 64 in January - I THINK this means that I will have an 'over 65' personal allowance for the whole of the 2008/09 financial year as I shall be 65 before April 09 - can anyone confirm this?

jem16

chesky369 wrote: »

I was 64 in January - I THINK this means that I will have an 'over 65' personal allowance for the whole of the 2008/09 financial year as I shall be 65 before April 09 - can anyone confirm this?

Yes you are correct - although to be pedantic it will be April 5th 2009.