phutoie2 Posted July 21, 2015 Share Posted July 21, 2015 Just read an interesting article in the DT online that the Chancellor is considering combining Income Tax and NI. A favourite hobby horse of his, he will be forming a unit to investigate the possibility. If it ever comes in, it would likely be years away , I wonder how this would effect those who are not employed and live on pensions. Link to comment
Eff1n2ret Posted July 22, 2015 Share Posted July 22, 2015 "If it ever comes in, it would likely be years away " I hope you're right, because "years away" I'll be dead. But the article doesn't exactly suggest that. It says that Osborne thought about including the measure in a budget before the last election, and the Office of Tax Simplification is to report before next year's budget, which leads one to think that they'll have a go sooner rather than later. It seems a sensible measure for wage-earners, and long-term a combined rate of 32% (ignoring the employer's contribution)should further increase pressure to reduce income tax, but it would be a massive vote-loser if pensioners weren't compensated with either a lower tax rate or a higher tax-free allowance. Link to comment
evadgib Posted July 22, 2015 Share Posted July 22, 2015 I guess this page is as good as any to post the latest from Gorgeous George: Spending Review 2015: What it means Link to comment
nong38 Posted July 24, 2015 Share Posted July 24, 2015 Not in this parliament but keep em peeled! Link to comment
twocatsmac Posted July 26, 2015 Share Posted July 26, 2015 Its bad news if you've retired early and have invested pension (ie rental property) to avoid NI. As previously mentioned its one to watch. Perhaps he isn't St. George after all. Link to comment
sandyf Posted July 26, 2015 Share Posted July 26, 2015 The OP lacks definition. For the majority on pensions there will be no effect, once you are over 60 NI is automatically credited. Link to comment
Ricardo Posted July 27, 2015 Share Posted July 27, 2015 The OP lacks definition. For the majority on pensions there will be no effect, once you are over 60 NI is automatically credited. "once you are over 60 NI is automatically credited" Do you have a link for that, please ? I'm retired and living here in Thailand, on the last few years' run-up to starting to draw my government Old Age Allowance, and had been considering the merits of buying 4-years' N.I. contributions, to bring myself up-to the 35-years now required to get a full pension. But if I'm already being credited with contributions automatically, then I needn't bother buying them ! But somehow I doubt that 'they' are really that generous, cynical old fart that I am ! Link to comment
chiang mai Posted July 27, 2015 Share Posted July 27, 2015 Once you reach the state retirement age, NI is no longer payable and that is not at age 60! https://www.gov.uk/tax-national-insurance-after-state-pension-age/overview Link to comment
sandyf Posted July 31, 2015 Share Posted July 31, 2015 The OP lacks definition. For the majority on pensions there will be no effect, once you are over 60 NI is automatically credited. "once you are over 60 NI is automatically credited" Do you have a link for that, please ? I'm retired and living here in Thailand, on the last few years' run-up to starting to draw my government Old Age Allowance, and had been considering the merits of buying 4-years' N.I. contributions, to bring myself up-to the 35-years now required to get a full pension. But if I'm already being credited with contributions automatically, then I needn't bother buying them ! But somehow I doubt that 'they' are really that generous, cynical old fart that I am ! I am 68 now, when I was early fifties I went self employed and was only paying Class 2 contributions. I made enquiries about my pension status, at that time 44 years were required. I was told that I had acquired 38 years and would need to get 39 years by the age of 60 to receive the full pension, the years 60 to 65 would be credited. I took a part time job while I was self employed to make the year up, not long after that they reduced it to 30 years. I am going on what I was told at the time and something may well have changed. The real answer is to get a status report from the pension office. Link to comment
Ricardo Posted July 31, 2015 Share Posted July 31, 2015 I am 68 now, when I was early fifties I went self employed and was only paying Class 2 contributions. I made enquiries about my pension status, at that time 44 years were required. I was told that I had acquired 38 years and would need to get 39 years by the age of 60 to receive the full pension, the years 60 to 65 would be credited. I took a part time job while I was self employed to make the year up, not long after that they reduced it to 30 years. I am going on what I was told at the time and something may well have changed. The real answer is to get a status report from the pension office. Thanks for responding. Given how the situation keeps changing, things may well have changed over fifteen years, I'd be slightly-dubious by now even if they'd given you the advice in-writing back then. It's always good to get an updated forecast, even if you can't rely on it totally, coincidentally I've just sent off for an updated one myself this week. Link to comment
phutoie2 Posted August 1, 2015 Author Share Posted August 1, 2015 Pensions are changing, if you are male born on or after 6 Apr 1951 or female 6 Apr 1953 from next April 1916 you will come under the new pension scheme. It has been set at 35 years of NI contributions. I have a sketchy record of NI at best, it has not been decided yet on how to pay for missing years. An announcement is expected in October. https://www.gov.uk/new-state-pension/overview Link to comment
sandyf Posted August 2, 2015 Share Posted August 2, 2015 I am 68 now, when I was early fifties I went self employed and was only paying Class 2 contributions. I made enquiries about my pension status, at that time 44 years were required. I was told that I had acquired 38 years and would need to get 39 years by the age of 60 to receive the full pension, the years 60 to 65 would be credited. I took a part time job while I was self employed to make the year up, not long after that they reduced it to 30 years. I am going on what I was told at the time and something may well have changed. The real answer is to get a status report from the pension office. Thanks for responding. Given how the situation keeps changing, things may well have changed over fifteen years, I'd be slightly-dubious by now even if they'd given you the advice in-writing back then. It's always good to get an updated forecast, even if you can't rely on it totally, coincidentally I've just sent off for an updated one myself this week. I found the later forecast and this is how it was actually put. .forecast1003.bmp Link to comment
Ricardo Posted August 2, 2015 Share Posted August 2, 2015 I found the later forecast and this is how it was actually put..forecast1003.bmp "if you meet certain conditions" being the key (let-out) phrase, I wouldn't be at all surprised if being resident-in-the-UK were one. Link to comment
sandyf Posted August 2, 2015 Share Posted August 2, 2015 I found the later forecast and this is how it was actually put..forecast1003.bmp "if you meet certain conditions" being the key (let-out) phrase, I wouldn't be at all surprised if being resident-in-the-UK were one. Almost without a doubt. Not left out deliberately, memory not what it used to be. Link to comment
ivan96822 Posted August 11, 2015 Share Posted August 11, 2015 Interesting topic and responses! Link to comment
Jip99 Posted August 11, 2015 Share Posted August 11, 2015 Once you reach the state retirement age, NI is no longer payable and that is not at age 60! https://www.gov.uk/tax-national-insurance-after-state-pension-age/overview You are correct, but sandyf is not wrong either. Between 60-65 NI credits are given IF OU ARE NOT WORKING. If you ARE working NI continues to be payable until retirement. Link to comment
sandyf Posted August 11, 2015 Share Posted August 11, 2015 Once you reach the state retirement age, NI is no longer payable and that is not at age 60! https://www.gov.uk/tax-national-insurance-after-state-pension-age/overview You are correct, but sandyf is not wrong either. Between 60-65 NI credits are given IF OU ARE NOT WORKING. If you ARE working NI continues to be payable until retirement. Thanks for the support. I mentioned it because of the question in the OP. "I wonder how this would effect those who are not employed and live on pensions." Link to comment
Harry2 Posted August 11, 2015 Share Posted August 11, 2015 I wonder how this will affect expats paying voluntary contributions? I have another 9 years NI to pay so if this is implemented say in 3-4 years time (before next election) I could be short 5 years. For sure they are not going to take much account of expats needs. Link to comment
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