Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
Sorry, my comment was based on logic. If you freeze tax thresholds for 4 years, and wages rise in line with inflation. This means that those that have incomes that fell below the tax threshold, start to pay tax. Those on the lowest incomes will find that more of their income will become taxable. I wasnt claiming to be one of those on a low income.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
Pension savers could get ‘generous increase’ to retirement pots in Jeremy Hunt’s Budget
She said: “One move the Chancellor could make for everyone, but especially pensioners and others on low incomes, would be to increase the personal tax allowance from its current level of £12,570.
“This would also counter accusations that the Government has been pursuing a policy of ‘fiscal drag’, allowing wage growth to bring more people over tax thresholds and generating more revenue.”
In the Autumn Budget last year, Mr Hunt confirmed that the existing freeze on tax allowances would remain in place until April 2028.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
But what you are saying us that you should be exempt from paying tax on your increased income.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
But what you are saying us that you should be exempt from paying tax on your increased income.
No I am clearly not. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
Not really relevant.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
I didnt say that I dont want to pay income tax. I do pay income tax. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of Your earlier calculation was incorrect, as the increase also affects my additional income. My additional income will not increase. My state pension last year was around 11k. So I received 1,5k of my additional income tax free.. If my state pension reaches the tax threshold next year, then I will pay an extra £300 tax on the 1.5k. The state pension increases beyond next year will mean that I will also pay increasing amounts of tax on the state pension. This will be in addition to the £300 every year.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
But what you are saying us that you should be exempt from paying tax on your increased income.
No I am clearly not. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
Not really relevant.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
I didnt say that I dont want to pay income tax. I do pay income tax. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of Your earlier calculation was incorrect, as the increase also affects my additional income. My additional income will not increase. My state pension last year was around 11k. So I received 1,5k of my additional income tax free.. If my state pension reaches the tax threshold next year, then I will pay an extra £300 tax on the 1.5k. The state pension increases beyond next year will mean that I will also pay increasing amounts of tax on the state pension. This will be in addition to the £300 every year.
You do not look at taxation in the same way as the Government. Or HMRC.
The tax system usually does not differentiate between differing types of income. It tends to look at total income, and taxes accordingly. So:-
0-12,570-0% 12,571-50,270-20% 50,271+-40% Etc
Now-as you rightly say-those thresholds could go up in line with inflation. But, if they did, then the income from tax drops. So-returning to my unanswered question-
Who do you think should pay more so you can pay less?
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
But what you are saying us that you should be exempt from paying tax on your increased income.
No I am clearly not. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
Not really relevant.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
I didnt say that I dont want to pay income tax. I do pay income tax. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of Your earlier calculation was incorrect, as the increase also affects my additional income. My additional income will not increase. My state pension last year was around 11k. So I received 1,5k of my additional income tax free.. If my state pension reaches the tax threshold next year, then I will pay an extra £300 tax on the 1.5k. The state pension increases beyond next year will mean that I will also pay increasing amounts of tax on the state pension. This will be in addition to the £300 every year.
You do not look at taxation in the same way as the Government. Or HMRC.
The tax system usually does not differentiate between differing types of income. It tends to look at total income, and taxes accordingly. So:-
0-12,570-0% 12,571-50,270-20% 50,271+-40% Etc
Now-as you rightly say-those thresholds could go up in line with inflation. But, if they did, then the income from tax drops. So-returning to my unanswered question-
Who do you think should pay more so you can pay less?
Amazon. Facebook. Starbucks , to mention a few. Facebook ? EBay ?
I’m guessing the answer to be, it’s not that easy., I’m sure it isn’t but it is definitely doable.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
But what you are saying us that you should be exempt from paying tax on your increased income.
No I am clearly not. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
Not really relevant.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
I didnt say that I dont want to pay income tax. I do pay income tax. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of Your earlier calculation was incorrect, as the increase also affects my additional income. My additional income will not increase. My state pension last year was around 11k. So I received 1,5k of my additional income tax free.. If my state pension reaches the tax threshold next year, then I will pay an extra £300 tax on the 1.5k. The state pension increases beyond next year will mean that I will also pay increasing amounts of tax on the state pension. This will be in addition to the £300 every year.
You do not look at taxation in the same way as the Government. Or HMRC.
The tax system usually does not differentiate between differing types of income. It tends to look at total income, and taxes accordingly. So:-
0-12,570-0% 12,571-50,270-20% 50,271+-40% Etc
Now-as you rightly say-those thresholds could go up in line with inflation. But, if they did, then the income from tax drops. So-returning to my unanswered question-
Who do you think should pay more so you can pay less?
Amazon. Facebook. Starbucks , to mention a few. Facebook ? EBay ?
I’m guessing the answer to be, it’s not that easy., I’m sure it isn’t but it is definitely doable.
An example of how difficult this is can be shown by Shell/BP.
They were told they had to pay a UK "windfall" tax on UK Profits.
Whereupon BP sold Pure Planet to Shell Energy, and Shell Energy sold up to Octopus. And then their enormous profits all come from their offshore divisions.
Far be it from me to ever moan about an increase in my income, but. The Tories have pledged to freeze personal tax allowances until 2028. Although, hopefully they wont be there beyond this year. The current level is £12,570.
My increase takes my pension up to £236 per week. Therefore £12,272 per annum. So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it. And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The last available statistics showed that roughly 31 million adults paid income tax and 23 million did not. Let's assume that 1 million of that 23 million start paying tax as a result of the freeze on personal tax allowances.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
In my case, I was merely making the points. My state pension is likely to be taxable from next year. I will pay more tax on my additional income. Any increases to the state pension will in future be diluted by both of the above.
You are making the points in the way that best suits you. Which everyone does. Pretty much everyone believes that everyone else needs to pay more tax. While they need to pay less. Not having a pop at you-everyone does the same.
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I wasnt offering an opinion. I was merely stating facts. As I said initially, I am glad of any increase to my state pension. Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income. Therefore a £250 increase to my state pension would become increasingly diluted, by both the above. That is a fact. I am not pleading poverty, or being ungrateful for any increase.
But what you are saying us that you should be exempt from paying tax on your increased income.
No I am clearly not. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
Not really relevant.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
I didnt say that I dont want to pay income tax. I do pay income tax. I will repeat myself yet again. Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income. Thats it, end of Your earlier calculation was incorrect, as the increase also affects my additional income. My additional income will not increase. My state pension last year was around 11k. So I received 1,5k of my additional income tax free.. If my state pension reaches the tax threshold next year, then I will pay an extra £300 tax on the 1.5k. The state pension increases beyond next year will mean that I will also pay increasing amounts of tax on the state pension. This will be in addition to the £300 every year.
You do not look at taxation in the same way as the Government. Or HMRC.
The tax system usually does not differentiate between differing types of income. It tends to look at total income, and taxes accordingly. So:-
0-12,570-0% 12,571-50,270-20% 50,271+-40% Etc
Now-as you rightly say-those thresholds could go up in line with inflation. But, if they did, then the income from tax drops. So-returning to my unanswered question-
Who do you think should pay more so you can pay less?
Amazon. Facebook. Starbucks , to mention a few. Facebook ? EBay ?
I’m guessing the answer to be, it’s not that easy., I’m sure it isn’t but it is definitely doable.
An example of how difficult this is can be shown by Shell/BP.
They were told they had to pay a UK "windfall" tax on UK Profits.
Whereupon BP sold Pure Planet to Shell Energy, and Shell Energy sold up to Octopus. And then their enormous profits all come from their offshore divisions.
I’m sure I read somewhere that the UK was warned by the USA that if we tried to make US based companies pay tax in the UK that there would be “consequences” in trade deals and other areas. As usual, it’s not always straightforward, as one decision often causes ripples that may mean problems in other ways that may not be seen by everyone.
Comments
For the exact reasons you mention.
The irony is that no-one ever examines the costs of Civil Service Pensions. As shown by the options available to him.
The Tories have pledged to freeze personal tax allowances until 2028.
Although, hopefully they wont be there beyond this year.
The current level is £12,570.
My increase takes my pension up to £236 per week.
Therefore £12,272 per annum.
So you can see where this is going.
A reasonable increase next year will mean a bit of tax on it.
And a bit more each year unless the personal allowance is increased.
If you have additional income, then obviously more of it will become taxable, as the state pension increases.
I am obviously glad of any increase, but the freezing of tax allowances affects people on the lowest incomes the most.
The poorest 22 million do not include you. And they are unaffected. Not saying that is right-just that "the people on the lowest incomes" are unaffected.
If you freeze tax thresholds for 4 years, and wages rise in line with inflation.
This means that those that have incomes that fell below the tax threshold, start to pay tax.
Those on the lowest incomes will find that more of their income will become taxable.
I wasnt claiming to be one of those on a low income.
My state pension is likely to be taxable from next year.
I will pay more tax on my additional income.
Any increases to the state pension will in future be diluted by both of the above.
She said: “One move the Chancellor could make for everyone, but especially pensioners and others on low incomes, would be to increase the personal tax allowance from its current level of £12,570.
“This would also counter accusations that the Government has been pursuing a policy of ‘fiscal drag’, allowing wage growth to bring more people over tax thresholds and generating more revenue.”
In the Autumn Budget last year, Mr Hunt confirmed that the existing freeze on tax allowances would remain in place until April 2028.
https://www.msn.com/en-gb/money/other/pension-savers-could-get-generous-increase-to-retirement-pots-in-jeremy-hunt-s-budget/ar-BB1iNDru?ocid=msedgntp&pc=NMTS&cvid=96d8db9559e747888c974759b6cfc9d3&ei=39
Let's give the opposite side of the coin. For the sake of argument (and my basic maths) let's assume that your pension increases by a flat £250 a year.
So-when you say "my state pension is likely to be taxable from next year" that is correct. Because your pension would increase to £12,522. Meaning you would get a tax bill of...£4.40.
Even if your pension were to increase by £1000 by 2028, you would be paying tax at the marginal rate of 20%. But you would still only be paying tax of £200-about 1.5% of your total income.
Everyone suffers. People on benefits don't get a "triple lock"-and are facing ever more stringent checks. People in work face a far higher tax burden.
The only thing that every group has in common is that they think the increased tax burden should not fall on them.
I was merely stating facts.
As I said initially, I am glad of any increase to my state pension.
Although while the tax threshold remains frozen, I will pay increasing amounts of tax, both on my state pension, and my additional income.
Therefore a £250 increase to my state pension would become increasingly diluted, by both the above.
That is a fact.
I am not pleading poverty, or being ungrateful for any increase.
Just like the young don't feel they should be paying £9k + a year for an education. While living with their parents for an extra 10 years before they can afford to buy a house. Or workers shouldn't pay an ever-increasing amount of tax, routinely including both income tax and NI on any increase. Or the wealthy elderly think that £1 million is far too small an IHT exemption.
I get that you don't want to pay any income tax. Same is true for all of us. Who do you think should pay more so you can pay less?
I do pay income tax.
I will repeat myself yet again.
Any increases are diluted by the effects of freezing the tax allowance, and will increase the amount of tax payable on any additional income.
Thats it, end of
Your earlier calculation was incorrect, as the increase also affects my additional income.
My additional income will not increase.
My state pension last year was around 11k.
So I received 1,5k of my additional income tax free..
If my state pension reaches the tax threshold next year, then I will pay an extra £300 tax on the 1.5k.
The state pension increases beyond next year will mean that I will also pay increasing amounts of tax on the state pension.
This will be in addition to the £300 every year.
Until these have run through the system the Government annually start off from an unaffordable base.
Only action is to increase taxation.
The tax system usually does not differentiate between differing types of income. It tends to look at total income, and taxes accordingly. So:-
0-12,570-0%
12,571-50,270-20%
50,271+-40%
Etc
Now-as you rightly say-those thresholds could go up in line with inflation. But, if they did, then the income from tax drops. So-returning to my unanswered question-
Who do you think should pay more so you can pay less?
The other is the enormous amount we currently owe. Which, despite 14 years of "austerity" still rises. Every single year.
Facebook ? EBay ?
I’m guessing the answer to be, it’s not that easy., I’m sure it isn’t but it is definitely doable.
Never mind, they should pay double anyway .
They were told they had to pay a UK "windfall" tax on UK Profits.
Whereupon BP sold Pure Planet to Shell Energy, and Shell Energy sold up to Octopus. And then their enormous profits all come from their offshore divisions.