Tax Misery for State Pensioners

seven-day-weekend

So, (going on MargaretClare's explanation as to why the tax band was abolished) my husband, having already brought up his own family, and living on a pension that he paid for, now has to pay more tax to go towards bringing up somebody else's family?

What child poverty, anyway?

krisskross

seven-day-weekend wrote: »

So, (going on MargaretClare's explanation) my husband, having already brought up his own family, now has to pay more tax to go towards bringing up somebody else's?

What child poverty, anyway?

How i agree with you. We also struggled to raise our own children, both of us working. Now as pensioners we are still being taxed large amounts on the pensions we paid for over many many years. There are no children living in poverty in this country or there shouldn't be. It is for parents to provide not the government via the pockets of the taxpayer.

Still at least we knew that we provided the food our children ate and the clothes they wore and didn't rely on pensioners and the poor to pay for them.

Shame on Gordon Brown and all his party. Labour used to be for the working class. Aneurin Bevan will be revolving in his grave if he could see what an absolute shambles his dream of a welfare state has become. I think this issue will be the final nail in the coffin for the present occupant of No. 10

terryw

I agree with many of the posters here, but I feel that we going off-topic a tad.
I have started a thread " The Welfare State" in the discussion area if anyone would like to contribute.

Thanks

terryw

EdInvestor

krisskross wrote: »

Now as pensioners we are still being taxed large amounts on the pensions we paid for over many many years.

One issue is that the 10p band has actually been kept for savings income.So anyone who has interest income on cash in the bank will still get the 10p allowance.But anyone who put their savings into a pension will not.

Perhaps the life assurance industry might like to take up this discriminatory approach to their customers?It will further reduce confidence in pensions.

margaretclare

It wasn't MY explanation. I was quoting what Angela Eagle, Treasury Minister, was saying on 'Any Questions' at the weekend.

seven-day-weekend

Ed, are savings automatically deducted tax at 10% or will my husband have to claim for it?

(Glad to say mine are all tax-free as I am now a non-taxpayer - no income!).

seven-day-weekend

margaretclare wrote: »

It wasn't MY explanation. I was quoting what Angela Eagle, Treasury Minister, was saying on 'Any Questions' at the weekend.

I meant your explanation quoting what the Minister had said.

EdInvestor

seven-day-weekend wrote: »

Ed, are savings automatically deducted tax at 10% or will my husband have to claim for it?

[/quote]

I think your husband probably needs to fill in a form from the bank/BS so that no tax is deducted at all and then pay the 10% via his tax return.

But, err, shouldn't you be on the Spanish tax system, not the British?

Mikeyorks

EdInvestor wrote: »

One issue is that the 10p band has actually been kept for savings income.So anyone who has interest income on cash in the bank will still get the 10p allowance.

That isn't correct. You only get 10% on any Savings interest that hits the band formed by 'personal allowances + £2320'. (the limit of the new 10% band)

So if you have £5435 personal allowances and income / pension of £7755 or more ..... then the 10% band does not exist for you. It's not a fixture as was the 10% tax band that was abolished. It's a completely new 'pseudo' band ... that only exists if your savings interest (top slice of your income) hits it.

Mikeyorks

EdInvestor wrote:

I think your husband probably needs to fill in a form from the bank/BS so that no tax is deducted at all and then pay the 10% via his tax return.

Not allowed. If tax is due from your overall income .... you're not allowed to sign an R85. Which contains a declaration to the effect that you're not a taxpayer.

seven-day-weekend wrote:

are savings automatically deducted tax at 10%

No change, there. The at source deduction from savings interest remains 20%.