Strikes

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Strikes

  • Yes

  • No

  • Only if it doesn't effect me

  • **** off Sucky

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FosseFilberto said:
Hmmm ... not sure I follow your logic there Bob ... the historic contributions came from a net pot of money ... the gross had already suffered income tax and NI ... therefore, when I want to have some of that net pot at a later date, and that receipt gets taxed, then the original gross pot has effectively been partially taxed again ... may just be semantics, but you can see where I'm coming from ...
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I'm genuinely surprised you don't know what tax relief is on pension contributions.
 
Treble said:
That one post was enough tbf.
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To remain ignorant ... agreed ...

... but just for you ... I draw a monthly pension (which ain't a lot) from one of my first jobs but I only receive 50% of it because half goes in income tax deducted by the pension fund... the pension pot it comes from originated from already taxed wages in the 1980s / 90s ... hence I've actually suffered 2 lots of income tax on the same pot of money ... now I realise you're not a maths teacher so, if you're still struggling, I'll PM the calculation <laugh>
 
Diego said:
You will always pay tax on any pension you draw whst still working because it's classed as taxable income.
Yes you have paid tax on the money you put in but haven't paid any tax on the invested income so that then gets linked to your earned income when working.

Probably a much better way to explain this but it's late and I can't be arsed.
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You pay tax on your Pensions when you retire as I have found out
 
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FosseFilberto said:
To remain ignorant ... agreed ...

... but just for you ... I draw a monthly pension (which ain't a lot) from one of my first jobs but I only receive 50% of it because half goes in income tax deducted by the pension fund... the pension pot it comes from originated from already taxed wages in the 1980s / 90s ... hence I've actually suffered 2 lots of income tax on the same pot of money ... now I realise you're not a maths teacher so, if you're still struggling, I'll PM the calculation <laugh>
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That bit in bold would've received tax relief surely? So in effect you wouldn't have paid tax on the original contributions.

Also wouldn't your employer have matched your pension contributions - also not incurring any tax on those either?
 
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BobbyD said:
yes but the money you put into your pension didn't get taxed in the first place so of course when you draw you it now you pay tax. Now if you fancy drawing your pension now whilst also working of course it's classed as additional income and comes as taxed. If you hadn't put it into your pension back in the yonder years (presumably you were also paying tax then), then you have just differed when you decided to pay tax.

That's not even accounting for the 25% tax free pension you could take as a lump sum either (if you took it out when these rules were in place).

If you really wanted to, you could wait til you aren't working anymore and then your draw your pension to save on higher rate tax unless you have a **** load of investments and properties in which case it probably is right that you should be paying tax on your pension :p
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You pay tax oneway or another from when you start working until to the day you die, then you family pays tax on what you accumulated through your life

Unless you are a chancer who never holds down a proper job but relies on petty crime and cash only for anything close to resembling work
 
Treble said:
That bit in bold would've received tax relief surely? So in effect you wouldn't have paid tax on the original contributions.

Also wouldn't your employer have matched your pension contributions - also not incurring any tax on those eitherunder?
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You are correct about the employer part ... but at the time my contributions were going in to this particular pension scheme they were from my post deduction wages ... rules have changed since back then but there is still that element of double taxation ... and if you are a higher rate taxpayer you lose half of each pension payment ...
 
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duggie2000 said:
You pay tax oneway or another from when you start working until to the day you die, then you family pays tax on what you accumulated through your life

Unless you are a chancer who never holds down a proper job but relies on petty crime and cash only for anything close to resembling work
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... unless you can claim non-dom like Rishi's missus <grr>
 
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In very simple terms when employed in a PAYE job the first deduction is NI, no tax paid, Second deduction is Pension contributions (if in a pension scheme) no tax paid, then tax code is applied and you pay Income Tax on the residue
 
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FosseFilberto said:
You are correct about the employer part ... but at the time my contributions were going in to this particular pension scheme they were from my post deduction wages ... rules have changed since back then but there is still that element of double taxation ... and if you are a higher rate taxpayer you lose half of each pension payment ...
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Fair enough Fosse. I didn't know about the 80's, I think tax relief on contributions was there in the 90's.

Slightly different topic but I think it was Pension ISA's that were considered excellent investments because you immediately got about 33% uplift on your contribution and if you were a higher rate tax payer they'd claim back the extra so it was an even bigger uplift, and that was before any growth on the investment itself.
 
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FosseFilberto said:
You are correct about the employer part ... but at the time my contributions were going in to this particular pension scheme they were from my post deduction wages ... rules have changed since back then but there is still that element of double taxation ... and if you are a higher rate taxpayer you lose half of each pension payment ...
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Are you sure about your pension contributions Fosse, the finance act of 1921 was when tax relief was given to pension contributions and whilst I agree that the rules have changed over the years, I’m pretty sure that part of the rules haven’t. The biggest changes that I remember were being able to opt out of SERPS and changes to AVC’s which were being abused by wealthy people as a way of avoiding paying tax.
 
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pieguts said:
Are you sure about your pension contributions Fosse, the finance act of 1921 was when tax relief was given to pension contributions and whilst I agree that the rules have changed over the years, I’m pretty sure that part of the rules haven’t. The biggest changes that I remember were being able to opt out of SERPS and changes to AVC’s which were being abused by wealthy people as a way of avoiding paying tax.
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Not 100% mate ... but it was what I was told when I was talking to that particular pension administrators when deciding what to do with it ... either way - still grates to lose half of it ...
 
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