Granny Tax

[maggiebee]

Have listened to all that has been said about this post budget. 5 million pensioners is a very large body of voters. I remember years ago a Red Clydesider calling pensioners "The Sleeping Giant". If they all voted together they had the power to bring any Government down if they so chose. Interesting thought.

[ladybirder]

Eddie, £13000 a year and no tax?? Can you explain please.

[parkie]

This certainly is a very contentious subject. But then, looking at it from another point of view, raising the pension levels over the next few years is a more positive step than any other government has done for the pensioners for years. If only the tax on fuel was reduced as well it would make such a difference to food prices and other people's incomes.

[EDDIE51]

Here is the table on the government web site, it has not been updated with the higher personal allowance anounced in the budget, so you have to add an extra £550 to each total.
http://www.direct.gov...l1/Newsroom/DG_200224
Remember in addition no one male or female over the Pension credit qualifying date has to pay National Insurance .
I am male born 23rd January 1951, I qualified for pension credit on 6th November 2011 so from that date I do not pay National Insurance on anything I earn . You get the NI extemption even if you do not claim pension credit, it is your age that matters, but you do have to actually claim it they will not just give it to you.

[factor-fiction]

Hi 10 clarionst- I agree that we would be better off if everyone shared your attitude to work and self-reliance.
But I don’t see how the tax system can differentiate between people like you and those that have been reckless or have claimed benefits previously. Are you suggesting tax allowances should vary based on some sort of points system- credits depending on number of years worked, debits if you have been reckless, debits if you were a banker, debits if you have ever relied on state benefits, etc....All this would be unworkable.
I’m still not sure why you feel these changes are so unfair. Many current and future pensioners will be unaffected. In time the increase in personal allowances and the planned large increase in the state pension will more than offset the changes to the age-related allowance which was an anomalous allowance anyway.

[ladybirder]

Factor I don't see how it is fair not to give the forthcoming £140/week pension to current pensioners or am I missing something?

[chaptazbru]

Thank you maggiebee for making me Best Answer! This is something I feel very strongly about.

[madmaggot]

Eddie, I think you are mistakenly thinking that the state pension is tax free. It is not.
State pension is added into all income and tax is paid on everything above the allowance of I believe 10.5k next year. So even if a person has a very small private pension it could take them into paying tax.

[EDDIE51]

I never said state pension was tax free , I just pointed out the amount a pensioner could earn before paying tax.
If you keep working after state pension age you can defer your state pension and get a larger pension later on. This option may well be more attractive now.