I don’t think I’m being unreasonable to be cross about this but maybe I am. Basically I am 67 I work part-time in a care home which has had coronavirus and I have had it myself although thankfully had no symptoms I’m still obeying all the social distancing rules but it’s quite difficult when you’re in a care home having to give personal care. Anyway I digress, I have just looked at my payslip for this month and I have paid £181 tax I only work 24 hours a week but the government tax my pension along with my wages hence I pay such a lot of tax every month and personally I just don’t think this is fair but not much I can do about it as I want to continue working I love my job.....
Not quite sure what you are complaining about, it is the same for anyone of pensionable age.
You get an annual personal allowance of around 12k, your state pension is deducted from this giving a lower annual allowance, anything you earn above this is taxed.
There are only two sure things in this world, taxes and death.
Yes I have always paid tax as I have always worked I just think it’s unfair to pay tax on your pension that’s all obviously I am in a minority here....
If the carers pay goes up, as it should, there will be even more tax to pay!
Can remember feeling indignant about tax as a teenager. By the time my mum took money for my keep, the tax and NI was deducted, I ended up with less than a third of my salary.
Tax is paid on retirement pensions - nothing we can do about that whatever our job is or was. Frustrating, but unavoidable - unless you are very very rich of course and can afford an accountant to dodge tax for you.
It's not the state retirement pension that's taxed; it's any income, from any source, that takes you above £12,500 annually. That's why I've deferred taking my state pension whilst I'm still working part time because I know I'd be taxed on it. And deferring taking the state pension means that it increases by 1% for every 5 weeks that you don't claim it. 10.4% if you leave it for a year.
I pay tax too but that’s one factor to consider when deciding to continue to work. I decided not to defer my pension,unlike Chewbacca, because it means that I don’t have to draw down any money from my investments and, even now, they are doing OK. At the moment, because I can’t work I am getting £160 furlough pay from the govn. Thank you for helping me out Shinamae ?? Sorry couldn’t resist? I hope to be paying it back soon.
I don't get enough pension to pay tax, but DH's pensions come to more than mine and he pays income tax. He has the benefit of the unused part of my tax allowance, though.
@Shinamae Have you checked that your tax code is correct? I have my state pension as well as three small private pensions and I always complete a Form R40 and send it off to HMRC and I usually receive a small tax refund.
Teetime that is true. I'm not sure about private pensions, but the state pension, which is more generous than ours, is not taxed. However - and this is a very big however - it is means tested so not everyone receives it. Assets as well as other income are taken into account too, I believe. If anyone emigrated to Australia years ago with a UK state pension, that is paid at the rate it was when they emigrated.