If your State Pension is more than your personal allowances they take the amount that exceeds your allowances and add it to your private pension to recover the tax. You get your private pension less the normal 20% then less the 20% of the added amount. A ‘K’ code is how they do it.I don't understand how this works. Can you explain please.
OK.If your State Pension is more than your personal allowances they take the amount that exceeds your allowances and add it to your private pension to recover the tax. You get your private pension less the normal 20% then less the 20% of the added amount. A ‘K’ code is how they do it.
I think it's more accurate to say your income is reduced rather than the SP is reduced.I never said I was double taxed. I said my State Pension would be reduced if I had no private pension because it is now more than my personal allowances.
I know mate it’s scary how fast it goes, it’s like I was never in the job if I’m honest, like someone else’s life. If my wife makes it to state retirement age which will probably be 68 by then I’ll be 80, so she’s only got another 23 years to go!Blimey ! It only seems yesterday you retired.
I'm in a similar boat to you with the partner being younger and by the time she's retired I'll be a goner. Extending retirement age has definitely cocked my final days up.
My state Pension is made up of three elements Basic SP, SERPS and Graduated. All elements were earned with deductions from my wages as encouraged to do by various Governments. Why should any of it be taxed, personal allowances need increasing for pensioners.I think it's more accurate to say your income is reduced rather than the SP is reduced.
I do agree though that there is no way the basic SP should be subject to tax. They should have lifted the lowest tax threshold to ensure it doesn't happen. Private pension is the same as any income and so liable to tax, after all it was tax free going into the pension.
I'm sorry but I'm confused. It is commonly accepted that NI goes towards the basic SP. How were all elements subject to tax relief? The only tax relief payable is on a private/personal/company pension How are you be able to differentiate what you contributed to each element? I'm genuinely trying to understand how this part all works.My state Pension is made up of three elements Basic SP, SERPS and Graduated. All elements were earned with deductions from my wages as encouraged to do by various Governments. Why should any of it be taxed, personal allowances need increasing for pensioners.
I was in the same boat so as you say it was untaxed money that was deducted so at some stage actually when you receive it back it becomes taxable.My state Pension is made up of three elements Basic SP, SERPS and Graduated. All elements were earned with deductions from my wages as encouraged to do by various Governments. Why should any of it be taxed, personal allowances need increasing for pensioners.
Back of the net
I thought I was on the Max at £921Ok thanks. In which case you're probably already paying 20% tax on the amount above £12570.
Lol.Back of the net
Not sure about Gray but in my case my contributions for NI were a percentage of my salary so for some of my middle years I was contributing a maximum which was far more than the average person. I was also taxed heavily.I'm sorry but I'm confused. It is commonly accepted that NI goes towards the basic SP. How were all elements subject to tax relief? The only tax relief payable is on a private/personal/company pension How are you be able to differentiate what you contributed to each element? I'm genuinely trying to understand how this part all works.
I hit 66 in May pension payable in July had my invitation to apply online mid March want bank details and proof of who you are.I’ve read that three months before state pension age I’ll receive a letter to claim.
I hit state pension age 66 in mid June so I’m slightly past that 3 months but my sp isn’t payable till September so outside the 3 months when it comes to me actually getting it.
So should I be contacting them or wait till I’m within the 3 months when payments due.
Thnx for that, so should have had a letter by now. I’ll contact themI hit 66 in May pension payable in July had my invitation to apply online mid March want bank details and proof of who you are.
So NI was taken before tax? That is different to how NI is taken nowadays.I was in the same boat so as you say it was untaxed money that was deducted so at some stage actually when you receive it back it becomes taxable.
Perhaps I am wrong but certainly any pension payments are made that way so that it grows with the tax added.So NI was taken before tax? That is different to how NI is taken nowadays.
NI is taken first before tax calculations, always has been with PAYESo NI was taken before tax? That is different to how NI is taken nowadays.