Tax on wages

I am serving in the MPGS , because I recieve a pension from my 22 years service with my regiment my pay is capped . When I was made up to a warrant officer two years ago, the extra pay for this was added to my monthly pay statement, then taken back off after it had been included in the taxable amount. I don't think I should be taxed on earnings I don't actually recieve, the tax office agree with me, but the pay people say it's right !!! Anyone else had this problem?? 8O


Not sure but it may be similar to the abatement on wages you are paid on FTRS if you are a in receipt of an army pension. It is designed so you do not earn more than your regular counterparts, taking account of inflation and is linked to Treasurey rules on pay & pensions.

I was in receipt of an army pension and had my pay abated for the 6 years I was on FTRS because of these rules and lost all but £50 of my pension.
Time to find an employer that doesn't fúck you up the arrse!

Just because you receive a pension (that you paid for via a pay scheme miles below the equivalent in civvie strasse) should have no bearing on your current salary. It is akin to an employer saying to someone who has had a moderate win on the lottery: "ok, because you have won 50k on the lotto, we are going to deduct 40k from your annual salary (after tax)".

It can be argued (slipping into Barrack Room Lawyer mode (all BRL opinions are just that and are in no way related to the real world)) that by penalising you for receiving a pension they are in breach of legislation banning discrimination on grounds of age. Unless your current employer is topping up your pension at the same rate as when you are serving, so when you leave you will not have suffered any financial loss whatsoever (just a temporary stay, resulting in much increased payments later) then seriously get another job somewhere else.

As I advised one or two people who had done 22 years: your pension is yours. You have earned it. The fact that you receive it is of no concern to any employer, only to the tax man, and so must be ignored in any negotiations over remuneration.
Yeah, thanks for your replies, I think it's bollocks that I have my pay capped due to getting the pension I have earned but what pisses me off is, I get paid as a W.O. then taxed, then after the tax is taken off the pay office deduct the extra pay (167.70p) off my pay , so in reality I'm paying tax on £167.70p earnings that I don't even recieve !!!!

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