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State Pension


steve_b_wales
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8 minutes ago, steve_b_wales said:

It's not a case of 'I'm hard done by' more that our government claw back money that, should not be classed as income. I could retire and live off my savings/pension, but I decided to give it a least one more year before I finally finish work. Maybe I'll go part-time later on. My annoyance is that the government, instead of allowing people like myself, to continue working and receive state pension, they class the pension as income and tax it. And, I am not better off at all, because if my tax code had remained the same, then I would be paying less tax on my wages.

Not sure I follow, pension is income, income is income, agree we pay too much tax though

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8 minutes ago, steve_b_wales said:

It's not a case of 'I'm hard done by' more that our government claw back money that, should not be classed as income. I could retire and live off my savings/pension, but I decided to give it a least one more year before I finally finish work. Maybe I'll go part-time later on. My annoyance is that the government, instead of allowing people like myself, to continue working and receive state pension, they class the pension as income and tax it. And, I am not better off at all, because if my tax code had remained the same, then I would be paying less tax on my wages.

Sadly it’s always been that way,all governments count pensions as an income. From 1979 the Tories even started taxing unemployment benefit too, though it was only about £16 a week at the time,with tax at 33% I think!

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27 minutes ago, Charliedog said:

Not sure I follow, pension is income, income is income, agree we pay too much tax though

Yes, but state pension is earned by paying national insurance, a form of tax, so basically, we are being taxed again.

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9 minutes ago, steve_b_wales said:

Yes, but state pension is earned by paying national insurance, a form of tax, so basically, we are being taxed again.

NI pays a small contribution and is tax free (?). This is in line with tax relief on pension payments (for some).

All taxed income is taxed again when it's spent (vat). 

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