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Age related Tax allowance

Community Veteran
Posts: 7,912
Thanks: 593
Fixes: 8
Registered: 02-08-2007

Age related Tax allowance

If you feel strongly about the Age related Tax allowance you may wish to consider adding your name to the following e petition,
https://submissions.epetitions.direct.gov.uk/petitions/31778
36 REPLIES
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Age related Tax allowance

I don’t feel that strongly about the age related tax allowance. It’s fair that both working and retired get the same tax allowance, but I’ve signed the petition as I believe the ‘granny tax’ is only the start at getting pensioners to contribute more (or take less from the economy).
Currently we get free prescriptions, free bus travel, free TV licence (after 75), winter fuel allowance and age discounts in various stores.
Community Veteran
Posts: 6,735
Thanks: 12
Registered: 02-02-2008

Re: Age related Tax allowance

Quote from: journeys
I don’t feel that strongly about the age related tax allowance.

I'm not sure about that, given that for decades governments have decided it's fair to give pensioners a larger allowance, presumably for good reason.
However, given all the other problems they have to put up with and the lack of any options to do anything about it when you've already planned your retirement budget carefully, it is grossly unfair to do this with minimal notice and no explanation or justification of the changed logic.
It would have been easy to do this in a gentle tapered way over several years at almost the same costs (but less pain), so it does look rather punitive.
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Age related Tax allowance

The argument for the higher allowance is that pensioners have little way to increase their incomes unlike those still at work who could do extra hours etc to help.  Also most pensioners have relied on interest from their savings and this has been totally eroded with the present interest rates. Good for those with mortgages or other loans but not for us pensioners.
The higher allowance was introduced by Winston Churchill.
nadger
Rising Star
Posts: 4,498
Thanks: 46
Registered: 13-04-2007

Re: Age related Tax allowance

Quote from: artmo
Also most pensioners have relied on interest from their savings and this has been totally eroded with the present interest rates. Good for those with mortgages or other loans but not for us pensioners.
Agreed  Cry
Community Veteran
Posts: 7,912
Thanks: 593
Fixes: 8
Registered: 02-08-2007

Re: Age related Tax allowance

Quote from: journeys

Currently we get free prescriptions, free bus travel, free TV licence (after 75), winter fuel allowance and age discounts in various stores.

The key word there is Currently. How long before we start to hear councils complain they are not getting sufficient money from the government to fully fund free Bus travel and that either gets withdrawn or a minimum payment has to be made each journey. Age discounts in various stores is new to me, does it include any stores selling food or essential items ?
I wouldn't put it past them to withdraw the winter fuel allowance on the grounds of global warming or what a mild winter we have had.
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Age related Tax allowance

Quote from: gleneagles
Age discounts in various stores is new to me, does it include any stores selling food or essential items ?
I wouldn't put it past them to withdraw the winter fuel allowance on the grounds of global warming or what a mild winter we have had.

I'm surprised, Age discounts (called gold card discounts) in our area are common and well advertised, includes Holland and Barret, Gregs, a local chippy  and Chinese takeaway, the barber,  the second hand book shop. Couple of clothing shops, a non chain store shoe shop, field and trek outdoor equipment, B&Q (hence then most hardware stores), most pub-meals before 19:00,  DVD hire from the local library, library book reservation/delivery and kindle download is free.
Our bus pass is also our library card is referred to as a "gold card" and is also used by disabled folk.
I agree, I wouldn't put it past the government to pull another trick on the retired, if I had to guess it would be more of an 'annual service fee' on the bus pass.
Ellis
Grafter
Posts: 213
Registered: 04-02-2011

Re: Age related Tax allowance

I've got fed-up with the poor return on savings. It doesn't help that the personal allowance is way above my income.
My way to combat this is to give up driving, scrap my car and buy a mobility scooter. I shall save nearly £1,000 by this (Vehicle Excise Licence, Insurance, Fuel tax and Vat.). At 83, I feel it is time to give up driving anyway. We have a good bus service which will get me to three local towns and occasionally to my step-daughters, about 90 miles away.
It just means re-arranging my life.
Community Veteran
Posts: 5,337
Thanks: 607
Registered: 23-09-2010

Re: Age related Tax allowance

As MP's pension contributions never rose as much as other civil servants the shortfall had to be found somewhere.
It's a bit like the probably real reason behind the 4p petrol rise going ahead. Someone has to fund MP's rising fuel costs.
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Age related Tax allowance

Funny I thought that the ConDems reduced the winter fuel allowance in last years budget
http://www.bbc.co.uk/news/business-12846318
thejudge
Grafter
Posts: 571
Thanks: 1
Registered: 01-08-2007

Re: Age related Tax allowance

One of the reasons why the over-65s have had higher tax allowances is that the State Retirement Pension is taxable income.
This means that - if you are in receipt of an occupational pension, for example - a deduction has to be put in your PAYE tax code to account for the amount of SRP you get in that tax year.
Higher allowances have been seen as a way of mitigating that a little.
tinto
Grafter
Posts: 262
Registered: 21-11-2010

Re: Age related Tax allowance

Quote from: journeys
[
I'm surprised, Age discounts (called gold card discounts) in our area are common and well advertised, includes Holland and Barret, Gregs, a local chippy  and Chinese takeaway, the barber,  the second hand book shop. Couple of clothing shops, a non chain store shoe shop, field and trek outdoor equipment, B&Q (hence then most hardware stores), most pub-meals before 19:00,  DVD hire from the local library, library book reservation/delivery and kindle download is free.
Our bus pass is also our library card is referred to as a "gold card" and is also used by disabled folk.


Can I point out the only one of the Age discounts you've listed is paid for by the public purse, is the bus pass, none of the rest can be used to justify taking away the age related tax allowance, which has been in place since 1925, for all of the good reasons mentioned above
pin2011
Grafter
Posts: 109
Registered: 09-06-2011

Re: Age related Tax allowance

Then there was that duffer Gordon Brown (Labour Chancellor) who 'simplified' the tax take by removing the 10p tax band and making it fairer by
increasing it to 20p for all tax payers up to £30000ish. This had more impact on those who could ill afford to lose more of their
income ie pensioners on the SP and an occupational pension.
community
Grafter
Posts: 666
Registered: 31-07-2007

Re: Age related Tax allowance

I am incensed at the chancellor's financial steal from the older of our population..older and therefore more deserving.
That is, in civilised countries.
You will find that the vast majority of civilisations around the world take great care of their seniors and respect their long input to
the welfare of all that follow.
I did suspect that when this present government were elected with so many young and rich men among them, there would be no
deep understanding of life as it is for most of us.
As a pensioner, I must say that we get a number of "perks" like bus passes and discount cards which help us but I never in my dreams
thought that a government of ours would actually tax our pensions! To me this is an unacceptable disregard for the seniors in our midst.
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Age related Tax allowance

Quote from: codfanglers
Then there was that duffer Gordon Brown (Labour Chancellor) who 'simplified' the tax take by removing the 10p tax band and making it fairer by
increasing it to 20p for all tax payers up to £30000ish. This had more impact on those who could ill afford to lose more of their
income ie pensioners on the SP and an occupational pension.

And don't forget one of Brown's first moves was to steal £50B each year from pension fund dividends which ruined our pensions in this country and saw the end of the final salary schemes.