Council Tax

Discussion in 'Off-Topic Discussion' started by Doghouse Riley, Mar 7, 2018.

  1. Doghouse Riley

    Doghouse Riley Head Gardener

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    Received notification today that it's increasing by 6.5%


    Received notification a few weeks ago that the State Pension is increasing by 3%


    "Something not right here."


    The proportion of your State Pension that exceeds your personal allowance is taxable.

    So, double whammy.
     
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    • ARMANDII

      ARMANDII Low Flying Administrator Staff Member

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      So no change there then, Riley.:dunno::heehee:

      At least we pensioners have had a rise in the pension, but there are millions of people out there who haven't had a pay rise in years and their rates will rise along with ours.........so we can't cry too much.:dunno::coffee::snorky:
       
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        Last edited by a moderator: Mar 7, 2018
      • JWK

        JWK Gardener

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        The State Pension is lower than the Personal Allowance so you would need other income to push you into a tax band.
         
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        • HarryS

          HarryS Eternally Optimistic Gardener

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          The state pension is far short of your tax allowance . Also the current obsession with quoting everything in percent's is not very good for comparisons. My maths teacher at college , said percent's are funny things and best left alone.
           
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          • Doghouse Riley

            Doghouse Riley Head Gardener

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            Yes the basic State Pension is lower than the personal allowance of £11,500.

            The basic State pension is £122.30 a week, but hundreds of thousands of people get more than double that, It depends on their earnings and added to that can be Graduated Retirement Benefit. (Which many of us paid into when it was around).
             
          • Jack McHammocklashing

            Jack McHammocklashing Sludgemariner

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            Annoying that every time the state pension increases, my tax take on my Private Pension increases till eventually my private pension will be Nil Was it worth saving all that pension pot
             
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            • Doghouse Riley

              Doghouse Riley Head Gardener

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              This is true.

              For those of us whose State Pension is higher than the tax free a allowance, the Inland Revenue notifies your private pension provider, the new total of your State Pension and they add the two together before working out your tax liability.

              Then the Tax People write to you several times a year asking you to complete a new self cert in the hopes of finding out if you've any new undeclared income they can tax.

              Well.. They did to me for a few years, until I wrote back to them to say "FFS, give over with it. If I get any addition income that isn't taxed at source, I'll let you know!"
              They've not written to me since.
               
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              • ARMANDII

                ARMANDII Low Flying Administrator Staff Member

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                Tell me about it, John:heehee: I'm [and the Chancellor] lucky enough to received 5 good pensions on top of my State Pension, plus I'm working, at the moment, for the CPS [well they pay the bill], and so I pay Tax [and I think, by the amount, someone else's:doh:]. So whatever I get usually gets sucked into the Treasury Coffers without even a thank you:wallbanging::dunno::coffee:
                 
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                • pete

                  pete Growing a bit of this and a bit of that....

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                  How do you actually get a state pension that is over the tax free allowance?
                  Tell me, I want one.:biggrin:

                  I think, you can only exceed the tax free allowance if you have a private pension, but I could be wrong.
                   
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                  • Freddy

                    Freddy Miserable git, well known for it

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                    I don’t understand this. If you’re a basic rate taxpayer, they will take 20% of any increase, over and above the annual allowance, so how they can take all of it, when you get to keep at least 80% of any increase?
                     
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                    • pete

                      pete Growing a bit of this and a bit of that....

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                      Sounds sensible to me, are you suggesting that pensions, no matter how large, should not be taxable?
                      I put my savings into a high, (joke) interest account, but the interest gets taxed, isn't that the same kind of thing.
                       
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                      • ARMANDII

                        ARMANDII Low Flying Administrator Staff Member

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                        Not if you're in the higher band, Freddy, due to the sum total of State Pension, other private Pensions, and if you're daft like me, keep getting dragged out of retirement then you pay for it, which can make it less worthwhile to do so.:dunno::doh:
                         
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                        • Freddy

                          Freddy Miserable git, well known for it

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                          • JWK

                            JWK Gardener

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                            Remember that when you saved for your pensions during your working life you got income tax relief. It's only when you come to draw your pension(s) that you pay tax on them. Hence you only pay income tax once on your pension income, which as pete says seems fair.

                            I agree that after you get your taxed pension income you end up paying other sorts of taxes such as Council Tax, VAT, Fuel Duty etc etc. But what is the alternative, the NHS, Schools etc have to be paid for by those of us who are lucky enough to earn more than the Personal Allowance.

                            I feel sorry for people on the basic state pension with no other income as Council Tax on it's own will eat into a lot of that.
                             
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                            • pete

                              pete Growing a bit of this and a bit of that....

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                              I tend to think all through your life if your income increases you pay more tax.
                              I'm struggling to see why anyone should think once retired that should change.
                               
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