Full Army Pension - State Pension at 65.

#2
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! 8-O
 
#4
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. ;-)

 
#5
#6
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.

D
 
#7
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.

D

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! :meditate: Keep taking the pills
 
#8
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.
 
#9
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. ;-)

Can't see why you are complaining, you're being treated no differently than anyone else.
 
#11
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.
 
#12
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.

The 'all and sundry' comes from the same book of myths as, Service personnel get cheap rent,and priority on council housing lists!
 
#13
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.

As for:
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. ;-)
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.
 
#14


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.
 
#15
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.

As for:

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.
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).
 
#16
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).
Fair one on the pedantry front ^_~.

Of course anyone under 65 has a tax allowance (after the last increase) of £9440 a year, so the pensioner of 65 to 74 is still doing quite a lot better on £10500 or £10660. And that's before the property advantages of the generation, fuel and travel benefits and so on.

It's a good job pensioners generally vote because they'd be completely stuffed if politicians thought they could do the same to them, as has been done to everyone else.
 
#17
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.

As for:

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.


You are out of your f**king tree,are you actually in receipt of the state pittance,I don't thinks,sunshine.

If you were you wouldn't be spouting that shit.

My wife and I between us,don't come anywhere near 24K p.a.,I can assure my children are a lot better of than we are,you think we get a speshul tax rate,have you any idea what the state pension is ?

As for my house,yeah I was lucky with that,I only spent 25 years paying for it,'golden generation',just keep reading the fairy stories,and listening to the propaganda on Sunday morning television,you want to try 15% interest on your mortgage payments,it's an eye opener!

And,I wasn't whinging,if you read my initial post,I told the OP,what would happen with his Army pension,and made what I thought was a humorous aside,then a few posts from people to young to be getting the state pittance,so are just interested bystanders,with no knowledgeable input,gobbing off.
 
D

Davetheclown

Guest
#18
Did I read rightly that non entitled personnel can rent SFA, or is the Port getting to me?
 
#19
Did I read rightly that non entitled personnel can rent SFA, or is the Port getting to me?
For example, on separation or redundancy you can apply to stay beyond the usual 93 day grace period, but you have to pay full whack. Eligible civvies can also rent surplus SFA at non-entitled rates. Chapter and verse here, in case you find you can't get to sleep later:

https://www.gov.uk/government/publications/jsp-464-tri-service-accommodation-regulations-tsars

Part 1, Chapter 4 refers.
 
#20
The reason it is said to be Tax Free , I believe , is that it is the first element on the calculation to determine a Tax Code and as it is less than the Personal Allowance results in no Tax being paid . However as other pensions are added in , as in my and many other cases , the Personal Allowance is exceeded and Tax is paid on each of those

Well a lot of people do not realise that as newly retiring Pensioners after 2015 they could be financially worse off with the new State Pension .

I was at a Reunion Dinner recently and the whole subject of pensions came up after the meal . A couple of the younger ( Hi Hi ) attendees were expressing their dissatisfaction that when they qualify for State Pension after 2015 they are going to get a poorer deal under the new legislation . Nearly all of us there were on Army , Company , State and or Personal Pensions and what really got the discussion going was that life affecting decisions made many years ago were now being unilaterally changed at a time in life when it would be difficult if not impossible to take remedial action . The whole Pension situation has further been sent into freefall , for those with Personal Pensions , because of Quantitative Easing and the subsequent collapsing of rates for Annuities . Mark my words the Pension situation will get worse with , as I have already said on another thread , the taxing of lump sums which is an option I am sure all Political Parties are looking at .


I was born during WW2 and have been retired for over ten years now but only because I took some good , lucky , decisions concerning Pensions and Investments as a younger man . I too can remember the very hard times of finding a 10% deposit on a house based on the value put on it by the Mortgage Provider not the seller and my having to make up the difference . Interest rates and Inflation well into double figures and my having to fund my son and daughter over a seven year period when they went to University because grants were means tested and they did not qualify . I am not complaining … at the time I just had to get on with life and make the best of each situation as it developed .
 

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