Discussion in 'Finance, Property, Law' started by Kaikona, Apr 27, 2013.
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does anybody know if the Army pension reduces when you start getting a state pension??
No,your tax on the Army pension increases.
Thus proving the lie,about your £10,500 tax free personal allowance,your State Pittance is part of it!
Why wouldn't it be part of your income? Genuine question - not sure what you're unhappy about.
According to all and sundry,my State Pittance is tax free (it incurs no tax),yet it is included as part of my tax free allowance,to calculate the tax on my Army pension ?
example: I get a State pittance (which is tax free) X,and I get an Army Pension,on which I'm taxed Y.
If X + Y is less than £10,500,I pay no tax,if X + Y is more than £10,500,I pay tax on the surplus,therefore my State pittance is taxable!
Add to that the fact that a Pensioners Tax Free Personal Allowance has been frozen,and it's downhill all the way.
Hope that helps.
All income is taxable,apart from the bit that sits below your tax threshold. It doesn't matter where it comes from.
Kites are also being flown about abolishing the higher allowance for pensioners and even levying National Insurance on pension.
What BL says above is exactly my understanding, and it's also borne out by the HMRC page covering tax on your state pension here (link).
I think the confusion is because the state pension is paid gross, without tax being deducted at source, but so far as I know it's been part of an individual's taxable income since it came in.
The issue to watch, which BL highlights, is any prospect of NI being payable on pensions, state or occupational - that would be a real hit.
Quite so,which kills off the much publicised rubbish that,the State pension is non-taxable,which is my point.
From 60 to 65 (due to redundancy),my only income was my Army pension,on which I paid tax,when I received my state pittance,my tax bill more than doubled.
As for BL's comments..........nothing surprises me anymore mate! Keep taking the pills
I understand what you're saying, but I don't think you've got what BL and I both said, and supplied links to. The State pension has never been tax free unless your entire income fell within the tax-free allowance. Whoever the 'all and sundry' who told you it was not part of your taxable income were just wrong.
Overall, pensioners have been hit less in the last 5 years than any other group (apart from bankers; spit). i guess that's why there's pressure to increase taxes on pensioners who aren't at the bottom of the scale and there is an argument for it, however unpalatable to those of us who receive pensions.
Can't see why you are complaining, you're being treated no differently than anyone else.
Did I say I was?
Yep, not sure what the issue with. MY NHS pension will be taxed with additional state pension when I hit 65 (or whatever age it comes at then!) as it counts as income. Mind you, I'll be a bit pissed off if NI comes into the equation at that age. Be aware that lump sums are on the agenda for taxing any minute now, this will be quite a hit.
The 'all and sundry' comes from the same book of myths as, Service personnel get cheap rent,and priority on council housing lists!
Well I sure as hell wish I was paying the same rent I did in the Army, so I'm not sure that one falls in the same category.
Do you actually know what's happened to tax allowances in the last few years? Pensioners who receive less than 24K a year haven't lost anything apart from inflation on that extra saving so far. In terms of tax allowances/rates they're still a hell of a lot better off than anyone who is of working age (and working). If you have children or grandchildren compare your finances with theirs and you'll see why they think you're part of the golden generation.
You might want to stop whining, because you won't get much sympathy from anyone who's still working and paying tax at the (normal) going rate.
Fully furnished rates for entitled personnel. Non-entitled have to pay market rates, which I can't track down. I think these may depend on local market rates and from memory can be about twice as much.
Pedantic one here - personal allownce ober 65 is £10,500 (£10,660 if 75 +) Income limit for all age related allownces now £25,400. Whoopee. If above £100,000 (yeah right) then reduced by £1 per £2 above allowence - metter of interest rather than relevance) Married couples allownence reaminas for those above 75. If you are registered as blind - though this is difficult to get, you have an additional £2,100 allownce, pluss reduced TV licence (wow).
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