Maisie

Member
Liz Truss policies and gaffes, how long will she last ?
The poorest citizens in this country do not pay National Insurance. So any 'cuts' purporting to 'help the poorest' will not make any difference. Particularly to those who, for whatever reason, only get paid 'benefits'. State pensioners stop payng NI when they reach retirement age but it is a shame that income tax doesn't follow suit.

Okay, I know the argument is that if you pay tax on your 'retirement funds', then you are doing fine. I have a pension which pays me £23.66 per month and this is added to my state pension for tax purposes. It is classed as earned income, but my idea of 'earned' is not the same as that of the Inland Revenue. Employment gives you an 'earned' income. That pension tips me into paying income tax, and precludes me from claiming anything else.

I paid into a scheme during my working life to get this pension with money that had already been taxed. So I really object to this being classed as 'earned income' and being taxed again.

Whilst I assume that people on benefits can possibly (?) claim more as the cost of living gallops away to infinity, it would help the people struggling if Liz reduced the lower percentage amounts of income tax and raise the threshholds at which this starts.

Maisie
 
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yalimart

The Carnwath Massive
Liz Truss policies and gaffes, how long will she last ?
The poorest citizens in this country do not pay National Insurance. So any 'cuts' purporting to 'help the poorest' will not make any difference. Particularly to those who, for whatever reason, only get paid 'benefits'. State pensioners stop payng NI when they reach retirement age but it is a shame that income tax doesn't follow suit.

Okay, I know the argument is that if you pay tax on your 'retirement funds', then you are doing fine. I have a pension which pays me £23.66 per month and this is added to my state pension for tax purposes. It is classed as earned income, but my idea of 'earned' is not the same as that of the Inland Revenue. Employment gives you an 'earned' income. That pension tips me into paying income tax, and precludes me from claiming anything else.

I paid into a scheme during my working life to get this pension with money that had already been taxed. So I really object to this being classed as 'earned income' and being taxed again.

Whilst I assume that people on benefits can possibly (?) claim more as the cost of living gallops away to infinity, it would help the people struggling if Liz reduced the lower percentage amounts of income tax and the threshholds at which this starts.

Maisie
Whilst I agree with you maisie, the taxman also likely contributed to your private pension fund/scheme
 

Maisie

Member
Liz Truss policies and gaffes, how long will she last ?
Whilst I agree with you maisie, the taxman also likely contributed to your private pension fund/scheme
As it happens, he didn't. This was paid by standing order from my net pay. I did not receive any tax relief on this. The statement I got every anniversary only showed the total amount I had paid in.

Maisie
 

Kanga

Member
Liz Truss policies and gaffes, how long will she last ?
The poorest citizens in this country do not pay National Insurance. So any 'cuts' purporting to 'help the poorest' will not make any difference. Particularly to those who, for whatever reason, only get paid 'benefits'. State pensioners stop payng NI when they reach retirement age but it is a shame that income tax doesn't follow suit.

Okay, I know the argument is that if you pay tax on your 'retirement funds', then you are doing fine. I have a pension which pays me £23.66 per month and this is added to my state pension for tax purposes. It is classed as earned income, but my idea of 'earned' is not the same as that of the Inland Revenue. Employment gives you an 'earned' income. That pension tips me into paying income tax, and precludes me from claiming anything else.

I paid into a scheme during my working life to get this pension with money that had already been taxed. So I really object to this being classed as 'earned income' and being taxed again.

Whilst I assume that people on benefits can possibly (?) claim more as the cost of living gallops away to infinity, it would help the people struggling if Liz reduced the lower percentage amounts of income tax and raise the threshholds at which this starts.

Maisie
1. Tax relief on your contributions is always collected by the pension company on your behalf. Even if you earn below the income tax threshold you still get the tax relief. If you paid into a company/ group scheme the contribution would have been deducted from your pay before tax.
2. The amount of pension income depends on the investment performance during the contribution period.You don't have to take what they offer and can shop around on the open market for a better rate. Trouble is people wont see an independent adviser so often end up with less than they might have got.
3. Pension income is deemed deferred income in law because you have not taken it during your working life, not paid tax on it, but deferred it until later, so you pay tax later.
 

yalimart

The Carnwath Massive
Liz Truss policies and gaffes, how long will she last ?
I had asked Linsey about this on the way home from our family funeral, she added that the way tax relief is structured you wouldn't see it on your payslip, you would only likely know about it if you were a higher rate taxpayer as you have to claim the relief ( I can't clarify this bit as she has now gone back to her dads) she also said tax relief on pension contributions isn't new its about 100 years old in one form or another.

I know nothing
 

Maisie

Member
Liz Truss policies and gaffes, how long will she last ?
1. Tax relief on your contributions is always collected by the pension company on your behalf. Even if you earn below the income tax threshold you still get the tax relief. If you paid into a company/ group scheme the contribution would have been deducted from your pay before tax.

This was a private pension that I organised myself. Money was deducted from net pay.

But if this was the case, shouldn't this have shown up as extra over my contributions in my yearly statement of account?

Maisie
 

Kanga

Member
Liz Truss policies and gaffes, how long will she last ?
This was a private pension that I organised myself. Money was deducted from net pay.

But if this was the case, shouldn't this have shown up as extra over my contributions in my yearly statement of account?

Maisie
It depends how long ago you started the plan. The standard application form would have asked for your employment status and your NI number among other things.
 

Akasya

Postless Pointer
Liz Truss policies and gaffes, how long will she last ?
Trickle down economics , the wealthy use it as a marketing tool to cover their acquisitveness . The money floods up deprivation floods down , how the patrician Conervatives , Harold Macmillan and Reginald Maudling would be heartily ashamed of this spin doctors , hedge fund owned spawn of pox on the bemused face of the British Public .
Steve
 

Maisie

Member
Liz Truss policies and gaffes, how long will she last ?
It depends how long ago you started the plan. The standard application form would have asked for your employment status and your NI number among other things.

I started this pension scheme roughly 1988.

Maisie
 

Saoirse

Moderator
Liz Truss policies and gaffes, how long will she last ?

What sort of government do the English electorate elect?

And btw keep your criminal cabals for your own country dont impose such a discredited regime where it has no mandate-Edinburgh/Belfast

Screenshot_20220923-200504_Facebook.jpg
 

Mushroom

Member
Liz Truss policies and gaffes, how long will she last ?
Linsey calls this almost Erdoganomics

She's right. Jeez, that is a synthetic gamble that did not get the desired result on the stock market or currency markets.
Can't understand why??
A woman interviewed in Leeds says she's going to save £100 a year in income tax but her mortgage has gone up £100 a month and energy bill has gone up an extra £200 a month by October and asked why she hadn't had the same 5p in the £ reduction that those on £150K+ a year are getting.
 

Mushroom

Member
Liz Truss policies and gaffes, how long will she last ?
There's just been a bloke on local TV who is the Managing Director of a large bakery and was saying that not only has their basic commodity, wheat, shot up but they have had to pay higher wages to keep staff and the energy bill by October will rise by another £190K compared with a year ago.
When asked if he welcomed the scrapping of the proposed corporation tax rise by the reporter, with his bluff Barnsley accent, he pointed out that they welcome corporation tax and he didn't care what rate because it means you've made a profit, which he doubted would be happening.
 

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