State Pension (Non) Increase.

[10ClarionSt]

The forhtcoming rise in state pension will be a big whammy for some pensioners who are on Pension Credit because it will take them beyond the qualifying threshold and disqualify them from entitlement. I know a couple of people who experienced this last year. Add to that the proposed rises in water rates and council tax, plus not being eligible for the WFA, all adds up to more hardship for senior citizens.  

[barry1010]

It would be interesting to know how many people will be affected.

[theshedman]

This is part of what happens when you have a government who seem to dislike anything to do with pensioners.  They see them as a burdon that they would rather not have.

[JJ109]

My state pension will never increase because I live abroad in a country that doesn't have a reciprocal agreement.

In addition because the tax authorities took too long to adjust my coding I did not pay UK tax on my state pension for 7 months and they are catching all the tax up between December and April.

That is fine for UK tax but it then means that I have to pay Thai Tax in addition as I cannot offset the UK tax for Thai Tax year Jan1 - Dec 31 2024.

As there is a reciprocal agreement for Tax, do you really think the UK authorities will refund the UK tax because I have paid Thai tax already!

8 months it took the UK and they have now placed me in a f****** mess!

[newmodarmy]

Haven't the pension credit thresholds gone up a bit though so that should help?

[newmodarmy]

Mine was for 10CSt

[barry1010]

Yes, the threshold is increasing by 4.1%

[barry1010]

JJ, did you know your state pension would be frozen before you chose to move to Thailand?

[newmodarmy]

Thanks Barry. So I'm not sure how the increase in state pensions will push people over the threshold. I don't like the 'cliff edge' threshold though...just being  few pence over can mean losing significant benefits like  pension credit, wfa, council tax / housing benefit, etc 

[davebro3]

They took a sledge hammer to stop "rich" pensioners getting WFA & couldn't be bothered if some of the poorer would lose out big time.

[barry1010]

NMA, the scenario where a couple are just below the threshold for pension credit could be affected by this if each pension is, for example, almost at the threshold. Say 50p each per week. The pension increase could push their combined pensions above the couples' threshold if my very limited maths is correct

[jan1956]

Labour hates us brits will give money to ant country except us, hope their voters are happy because the majority of the country are not

[newmodarmy]

I'm not sure either, but on the face of it the pension has gone up by 4.1% and the threshold has gone up by 4.1% so anyone who was just under the thresholds before will still be just under it. I can see though that there may be the odd case where someone was getting a small private pension  too that's had a  larger increase.

 

[10ClarionSt]

Thanks for the replies folks. Even if the increase doesn't affect Pension Credit, it may take some people into the taxable bracket, but as I said, I know two people who lost their pension credit last year because of the state pension increase, and they didn't have any other income than state pension. 

But this Labour mob don't care about senior citizens as some of them won't be here to vote next time. 

[bednobs]

labour werent inpower last year

[vulcan42]

newmodarmy, I'm one of those with a state pension and a small additional pension. Every time there's a rise in the state pension, HMRC deduct 20% of the increase and add it to the small pension where they deduct the tax. So I get 80% of the new pay rise but my tax increases as well. Every time there's a rise in the state pension my secondary pension gets smaller.

[JJ109]

Barry - thank you. I am not relying on my state pension, that is the icing on the cake. I moved to Thailand in 2005 and I was not thinking about pensions then, although rules have changed many times since then, always to my detriment.

The latest is the tax. I have to pay Thai tax on untaxed incomes from abroad. The state pension is untaxed when received but the UK adjusts my tax coding for my other pension to reclaim the tax, as the state pension is taxable. However, the Inland Revenue took 7 months to adjust my tax coding and then will get the tax back in the next 4 months, crucially 3 of those months are in the next Thai Tax year which runs from Jan 1st to December 31st. Therefore I am unable to offset the UK tax and have to pay Thai tax in addition. Obviously in future years there will be no Thai tax to pay. Therefore, by delaying the setting of a revised coding when I first received my state pension, and despite my early advice to them, the fact that they did not change the coding means that for this year only I am paying double tax - to both the UK and to Thailand on my state pension.

[THECORBYLOON]

When HMRC recover the tax they are owed, can you not then recover the tax you paid to the Thai tax folk?

[JJ109]

TheCorbyloon - I shall try but as the tax was not paid in their tax year, it is unlikely. However, from my understanding,the tax paid in Thailand can be offset against the UK tax as that does fall within the UK's tax year.............but can you see what trouble lies in store for me trying to explain to the UK tax authorities that they should refund me the tax because they took too long to tax me in the first place.

[barry1010]

Nightmare

[newmodarmy]

vulcan- yes, I'm aware of and agree about the tax issue as it affects me too, especially as I also work part time...I just didn't mention it as the OP was talking about the effect of the state pension increase on Pension Credit.