Here comes the tax rises

Originally Posted by papa smurf

do you suspect government interference ?

Do you?

[papa smurf]

Originally Posted by Hugh

Do you?

I was asking a question not offering an opinion

[Pierre]

<removed>

Originally Posted by Escapee

One of my former work colleagues is attempting to get his 25% tax free from his pension fund and isn't having much luck. I did the same a few months ago with the same company and it was very straight forward. I was surprised how quickly and easily it was to progress, but then again it was before panic had set in for those who have been planning their retirement. I obviously didn't predict the election happening so early in the year, but I wanted to get my tax free dosh before a Labour government was in power.

The Government hasn't changed the rules on that. It's a routine transaction with the pension provider. It should be quick and easy to progress as it will be largely automated.

[Escapee]

Originally Posted by papa smurf

do you suspect government interference ?

No, I don't suspect that is the reason. I suspect it's the sheer volume of people rushing to get their money before the budget.

---------- Post added at 22:14 ---------- Previous post was at 22:04 ----------

Originally Posted by Damien

The Government hasn't changed the rules on that. It's a routine transaction with the pension provider. It should be quick and easy to progress as it will be largely automated.

Agreed, I can understand the chaos with people rushing to sort out frozen company or private pensions. But he has already transferred his pensions into a SIPP, so it should be as straight forward and as quick as mine was (days), but it seems to be stalling.

ps. There appears to be a few media outlets reporting a sudden rush:
https://www.express.co.uk/finance/pe...n-savers-panic

[Hom3r]

I posted on Farcebook that Starmer & Rayner should resign.

They removed it Siting it goes against their standard, HOW??

---------- Post added at 22:52 ---------- Previous post was at 22:48 ----------

They should ban all freebies.

I mean some of my jobs they weren't allowed, in another I was allowed to keep the bottle of Whisky I was sent.

I gave it to my dad as I didn't drink it at the time.

Originally Posted by Escapee

Agreed, I can understand the chaos with people rushing to sort out frozen company or private pensions. But he has already transferred his pensions into a SIPP, so it should be as straight forward and as quick as mine was (days), but it seems to be stalling.

ps. There appears to be a few media outlets reporting a sudden rush:
https://www.express.co.uk/finance/pe...n-savers-panic

Another story here

https://www.telegraph.co.uk/business...pede-tax-raid/

I would be surprised if Labour touched the 25% lump sum. There were more rumours they might move to a flat rate of 33% relief but I don't see that either.

[papa smurf]

Originally Posted by Escapee

No, I don't suspect that is the reason. I suspect it's the sheer volume of people rushing to get their money before the budget.

---------- Post added at 22:14 ---------- Previous post was at 22:04 ----------



Agreed, I can understand the chaos with people rushing to sort out frozen company or private pensions. But he has already transferred his pensions into a SIPP, so it should be as straight forward and as quick as mine was (days), but it seems to be stalling.

ps. There appears to be a few media outlets reporting a sudden rush:
https://www.express.co.uk/finance/pe...n-savers-panic

plain old sheer panic eh

[Escapee]

Originally Posted by Damien

Another story here

https://www.telegraph.co.uk/business...pede-tax-raid/

I would be surprised if Labour touched the 25% lump sum. There were more rumours they might move to a flat rate of 33% relief but I don't see that either.

You may be right, they may not touch the 25% lump sum. But the damage is done, which is down to their negative vibes and warnings months before a budget that it's going to be a bad one.

I could understand a further left Corbyn type government hitting pensions out of spite, but I think Starmer and his cabinet are just showing that they are a bunch of amateur politicians.

If they want to move to the model of a means tested old age pension, they have shot themselves in the foot. They have prompted pension investors to take their money out of schemes that were most likely offering a good rate of return, and instead putting that money into accounts offering poor returns or splashing the cash on foreign holidays etc.

I have read many of the news articles over the past few months regarding pension tax relief, and it's frightening that how many people in the comments sections clearly have no idea how it works. I have seen comments where people have said they shouldn't be taxed because they pay tax via PAYE, and when you try to explain to them it's like banging your head against the wall.

I have also seen comments regarding salary sacrifice and the higher rates of tax relief, where people have said things such as "Why should the rich get more money from the government".

If they introduce a flat rate, which I think would more likely be 30%, I think that would result in people in their 50's and 60's who have built up reasonable pension pots will just reduce their hours. That would then run the risk of these people falling short in funds when they fully retire.

I'm currently negotiating a contract for 2.5 days a week, because I have a feeling that it will be hardly worth working 5 days a week. I wish the budget was out of the way instead of the doom and gloom that Starmer and Reeves has caused.

[jonbxx]

A cheeky little thought crossed my mind this morning. So, Labour say, you’re right, personal donations, even if previously OK should stop. Considering the hissy fit opposition MPs are having about this, they will definitely vote for this won’t they, surely?

Of course you could argue that banning donations should only apply to the party in power but if you do, then all donations to Labour MPs before 5th July are OK. You could argue that Labour was odds on to win the election for some months before July so they shouldn’t accept donations on this basis but that is saying that accepting donations on that basis is effectively publicly admitting that your party can’t win an election…

Politics and unintended consequences run wild here!

Originally Posted by Escapee

If they want to move to the model of a means tested old age pension, they have shot themselves in the foot. They have prompted pension investors to take their money out of schemes that were most likely offering a good rate of return, and instead putting that money into accounts offering poor returns or splashing the cash on foreign holidays etc.

We're a very long way away from a means-tested old-age pension. I don't think it'll ever happen but if it does it will be in a future Parliament and brought in for younger people rather than anyone nearing retirement.

At some point people need to take personal responsibility over their finances and investment choices rather than going off panicked vibes they're getting from the media. It's unreasonable to deduce that the government will introduce a means-tested state pension. Such a move would make the poll tax riots look small.

I have read many of the news articles over the past few months regarding pension tax relief, and it's frightening that how many people in the comments sections clearly have no idea how it works. I have seen comments where people have said they shouldn't be taxed because they pay tax via PAYE, and when you try to explain to them it's like banging your head against the wall.

Yes, financial literacy in this country is bad. Same with people who don't understand how tax bands work and assume you're better off not going into the 40% bracket.

If they introduce a flat rate, which I think would more likely be 30%, I think that would result in people in their 50's and 60's who have built up reasonable pension pots will just reduce their hours. That would then run the risk of these people falling short in funds when they fully retire.

This is why I don't think it will happen alongside the pain it would be to actually implement.

---------- Post added at 09:36 ---------- Previous post was at 09:33 ----------

Originally Posted by jonbxx

A cheeky little thought crossed my mind this morning. So, Labour say, you’re right, personal donations, even if previously OK should stop. Considering the hissy fit opposition MPs are having about this, they will definitely vote for this won’t they, surely?

Of course you could argue that banning donations should only apply to the party in power but if you do, then all donations to Labour MPs before 5th July are OK. You could argue that Labour was odds on to win the election for some months before July so they shouldn’t accept donations on this basis but that is saying that accepting donations on that basis is effectively publicly admitting that your party can’t win an election…

Politics and unintended consequences run wild here!

I wish they would do this but I don't think so. Most MPs will want to keep this which is why most of the attacks have come from the media rather than the Tories.

It's not needed for their jobs or really campaigning but to enrich themselves. They want these perks.

I would ban donations and increase the salary, linking it to civil servant pay.

[Escapee]

Originally Posted by Damien

Yes, financial literacy in this country is bad. Same with people who don't understand how tax bands work and assume you're better off not going into the 40% bracket.


I would ban donations and increase the salary, linking it to civil servant pay.

I'm guilty, I didn't take too much notice of my pension pots until I hit 51. I pretty much kept paying in as much as I could afford to a mix of private and company group private schemes from the age of 20. I knew a few of the company schemes were rubbish, the original private scheme hadn't written to me for years, I contacted them and they sent an annual statement and I was shocked how well it was doing. At that point I took over handling the investments of my then company pension as a few others had, and it was the right decision.

I think that avoiding higher tax brackets depends on personal circumstances, for example if you are contracting inside IR35 paying 13.8% employers NI, Apprentice levy, 40% or 45% personal tax, 10% NI and having your personal allowance reduced your view may be different.

[papa smurf]

Great speech by starmer


Keir Starmer demands 'return of the sausages'

https://www.express.co.uk/news/polit...nference-gaffe

[Mr K]

Originally Posted by papa smurf

Great speech by starmer


Keir Starmer demands 'return of the sausages'

https://www.express.co.uk/news/polit...nference-gaffe

I think you need to diversify your media sources.... Plus the crossword is rubbish.

[papa smurf]

Originally Posted by Mr K

I think you need to diversify your media sources.... Plus the crossword is rubbish.

ok pick one you like

https://www.politico.eu/article/uk-k...hostage-hamas/

https://www.theguardian.com/uk-news/...e-speech-video


https://www.independent.co.uk/tv/new...-b2618103.html