Autumn statement

V3ra

Thank you growstuff, I actually started receiving my state pension from May this year and had enough contributions for the full amount 🙂

In that case, you wouldn't have to pay NICs anyway.

I’ve waited for the detail to become clearer, as was suggested earlier.

Overall, it’s a spiteful, scorched earth budget, which will penalise the poorest and most vulnerable; hollow out public services; and which is designed as a political trap for a future Labour government.

It does nothing to help with the key issues of the cost of living and climate crises, or improving education, healthcare and housing.

Thank you growstuff, I actually started receiving my state pension from May this year and had enough contributions for the full amount 🙂

Thank you Dinahmo for confirmation of what I was trying to say. I paid voluntary Class 2 contributions because it was worth it for me. My profits were below £6,725, so I didn't have to pay any NICs and could have saved in the short term. Then I realised that paying them (£3.25 a week) mean that my state pension would increase by over £4 a week for each year I paid voluntary contributions. I'm now receiving over £20 a week increase in state pension for an initial cost of about £750, so I've already received back more than I paid. I wouldn't have that option with the changes.

v3ra If you are under state pension age, check that you will be credited for the past year for your pension calculation. In the past, your Class 2 contributions would have automatically counted towards your pension.

RE Class 2:

First, the requirement to pay class 2 NICs will end on 5 April 2024, offering a saving of £3.45 each week

I've just submitted my 2022-23 tax return and there was a message saying:

New for 2022-23
Class 2 National Insurance is not payable if taxable profits are less than £11,908

My profits are less this year as I had scaled back my working hours.
I haven't had to pay Class 2, Class 4 or income tax, all of which I normally do.

What this means I have had to pay though, is the gift aid on my charity donations through the year!

Margiknot

I got a rather odd text supposed to be from HMRC suggesting i am not being paid the minimum wage! Well no I'm not - I'm ( newly) retired and getting SP- although last tax year I was still working P/T to supplement my SP so both together put me above the tax threshold. Did anyone else get a similar text? The tone of the text was to shop my employer if they ( ??SP perhaps) were not paying the minimum wage!! I guess they want me to earn more so that I can pay more tax? I

I do agree we should pay some tax if we have a qualifying income. It will be odd if the tax threshold ( as its been frozen) eventually drops below the SP.

It's a scam. HMRC do not send out emails like that.

Whitewavemark2

This is an austerity package wrapped up as a give away.

I agree and it resembles a suicide note for the Tories.

This is an austerity package wrapped up as a give away.

Grantanow

Failure to announce extra funding for local authorities to do more housing, social care, etc., will mean big Council Tax increases and as they are not protected from cuts it may be quite swingeing.

It really doesn't bare thinking about, Grantanow.

growstuff

Abolition of Class 2 NI payments for the self-employed is a trick!

For people with very small business (like I had), it might seem like a saving. However, it also means that they won't be eligible for those years to count towards the state pension. I'm not sure of the actual figures now, but a few years ago, each extra year was worth something just over £4 a week in pension, so well over £200 a year.

So, if you don't have the minimum number of years for a full state pension, it might be worth paying voluntary Class 4 contributions, which are more expensive (and I'm not entirely sure it's possible).

The government tried doing the same thing a few years ago when Sunak was Chancellor, but abandoned the idea when it caused a backlash from very small business owners

RE Class 2:

First, the requirement to pay class 2 NICs will end on 5 April 2024, offering a saving of £3.45 each week. Although Jeremy Hunt described this as an abolition, the situation is a little more complicated, since those with profits of less than £6,725 may still choose to pay voluntary contributions in order to ensure contributory benefits including to a state pension. Anyone whose profits exceed £6,725 will automatically receive access to contributory benefits.

Re Class 4:

Secondly, the class 4 NIC rate for the self-employed is to be reduced from 9% to 8% with effect from 6 April 2024.

There is no voluntary payment scheme for Class 4 which is payable on profits between £12570 and £50270 (2022/23 rates)

The autumn statement is being described by economic commentators as ‘smoke and mirrors’. As usual the Tories are taking the British public for fools. Sadly some will fall for it

Failure to raise the tax thresholds will bring 4 million more people into paying tax and 3 million will move into the higher tax threshold payment.

Failure to announce extra funding for local authorities to do more housing, social care, etc., will mean big Council Tax increases and as they are not protected from cuts it may be quite swingeing.

It goes up in April. What if they have called a May election?

Of course it’s all about the election and wanting to keep voters onside, but every political party does that.
I don’t think it’s a con as they will have to keep the promise at least for the next year.Mum and I won’t be voting for them in any case, but hope that Keir will keep the triple lock for pensioners, as she needs it.

Oreo

Mum is very happy about the state pension increase from next April but is worried that if Labour get in they mightn’t keep the triple lock.I understand her worries and would like Keir to come out and say they will def keep it.

I think it's more likely that the Tories will drop it if they get back in.

After all they were talking about downgrading it for this year and seemed to have miraculously changed their minds. Obviously, that couldn't be anything to do with an up and coming election and conning your mother and other pensioners - could it Oreo?

LizzieDrip

*…we’re no longer economically active*

I really don’t like that phrase! I find it demeaning to be described as ‘economically inactive’ - I pay tax every time I buy something that incurs VAT. As for Hunt’s autumn statement, it’s clearly designed to throw breadcrumbs ahead of the GE, in the hope that those with short memories will forget the last 13 years.

I really don’t like that phrase! I find it demeaning to be described as ‘economically inactive’.

I understand - but statistically, that's what we are.

However, most pensioners' money goes straight back into the economy I'd imagine. Possibly the more we get, the more we spend also. I don't know what the latest figures are, but pensioner consumer spending was worth, back in 2015, around £320 billion a year, according to the Centre for Economic and Business Research. During that year, without that input the economy would've been reduced by about 4%.

So, in that sense, we are most certainly not economically inactive. As I'm sure the Chancellor is aware.

Ye# growstuff, I receive the old SP because I am older than you. That’s not going to change.

Borrheid55

Hunt has just announced that SP will rise by 8.5% in April. I wonder how many of us will pay more tax as a result? Why is the ‘living wage’ twice the level of our pension?

I get the minimum wage as do most part time employees.
I have a 10 hour contract because that’s all I can get.
10 x £11.44 doesn’t = twice the state pension.

Your state pension probably is lower than mine because I believe you are older and possibly receive the old state pension, for which you were eligible at a younger age than I was eligible for mine.

I repeat - your idea of "very little" isn't the same as mine.

Germanshepherdsmum

I disagree growstuff. I receive a very small pension from the 13 years I worked in local government because for most of that time I was working as a secretary, having been unable to obtain articles until I had passed all my exams because I didn’t have a degree. My salary only increased significantly after being employed as a solicitor in private practice and within a couple of years being made a partner, responsible for my own pension arrangements - with the company chosen by many professionals including all my partners. So my occupational and private pension income is very low.

My SP is considerably lower than my husband’s, with a similar number of years’ contributions, who was never contracted out. It may well be less than your SP. And certainly less than that of a very low paid worker in receipt of the full old SP, let alone the new one.

A|s I said, your idea of "very small" isn't the same as my idea of "very small"!

Jackiest

By not raising the threshold that you start paying tax he has, because of inflation, effectively raised the tax for the poor and given the benefits to the rich in true Tory fashion.

He's actually in effect increased the state pension less for those paying tax. It's not the headline figure for those paying tax, but it's still an increase.

PS. NI is increasing for some of the very lowest paid.

If you consider the SP, you will (on basic rate tax) be left with 80% of it.
Benefits will be increased.
NI is being decreased for those who pay it.
The living wage is being increased.

What exactly do you want?

By not raising the threshold that you start paying tax he has, because of inflation, effectively raised the tax for the poor and given the benefits to the rich in true Tory fashion.