Beware of the thieving HMRC!!!!

Discussion in 'Finance & Pensions' started by MG Maniac, Apr 4, 2013.

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  1. As some are aware Mrs MG hits the big 6.0. this year and yesterday got some bumf through regarding her preserved NHS Pension which she can claim this year! Woo Hoo! ... So reading the letter it you have to download a form and fill it out ... so downloaded the form and started to read it through ... but then got to the bit about "Lifetime Allowance" .... bottom line is that as far as I can make out, you have to declare any pension that you are a) in receipt of and b) going to get including any lump sum ... and if its in excess of £75k then HMRC get 55% of your lump sum and 25% of your pension! What I cant work out if the £75K is a one off amount or is it a yearly thing???? With mine coming up in 5 years do I have to account for my lump sum I got from pusser plus 20 years pension already recieved when my NHS pension kicks in because if so it looks like I'm going to be in the deep and dire!

    So question is guys and girls ... has anyone been in this sort of situation??? Any advice on how to stop HMRC plundering my hard earned pensh any more than they are doing now????
     
  2. I don't know but as I hit 65 next year I will be very interested in the answer.
     
  3. wal

    wal Badgeman

    Two years to go for me, so I'm paying attention to the answers.


    Is Pusser going to give us much this year?
     
  4. I remember getting a letter like that a couple of years ago when I hit 65. I think the 75K is the total of your annual pensions. But why not check it with the CAB, number in the phone book.
     
  5. Go and get yourself an accountant is my advice.
    For a couple of hundred dollar they sort it all out and to them its routine.
    Mine saved me a whole dollop and with this NHS compensation about to land in my lap his services are needed more than ever. Thank God for crooked bastards. I of course meant "accountants" who can still rob with a smile on their face as they create a masterpiece of splendiffery.
     
  6. Wonder who taught them that.
     
  7. Last edited: Apr 4, 2013
  8. OK ... have had a nice chat with the Pensions Advisory Service ... what a nice man ... however apparently when in receipt of a pension (other than State Pension) they take into account any pensions that you are already in receipt of (including any lump sum) ... multiply by 25 and then add that to any lump sum and pension that you are going to recieve and multipy that by 20 ... and if that exceeds £1.5M then you get hit by a nice tax bill!

    So Pussers pension + Gratuity received so far multiplied by 25

    added to any gratuity / pension payments you are going to get i.e. Private/Workplace pension scheme (mulitplied by 20) ... has got to be under £1.5M ... and seeing that I haven't earnt £1.5M in my total working life ... think I'm going to be OK jack! (Thanks Scouse for your thoughts too!)

    It was the thought of 55% of my NHS gratuity ... and 25% of the pension going into the grubby hands of HMRC put me into a cold sweat! What makes me even more annoyed is the fact that they work out these sums pre tax ... so if you are like me and paying tax on my Pussers Pension at BR at source ... then they add your pension "pre tax" to your present salary and tax the whole lot again so in effect you are paying tax on your pussers pension twice ... and then if you are lucky enough to have another occupational pension they lump your pussers pension into it and tax it again on what you have already had (and paid tax on). I know this isn't Lil's .... but what a bunch of money grabbing [email protected]!
     
  9. :laughing5:The State Pension counts as taxable income but is paid to you without tax taken off. How you pay the tax due on your State Pension will depend on a number of factors. If your income is low there may be no tax to pay - and you may be able to get other benefits. But in your case no such luck as you are in receipt of an occ pension as well ^^\\\\\\\' If you get another pension (like a retirement annuity or a personal or company pension) and you pay tax on this you'll usually pay tax on your State Pension at the same time. This is done through the PAYE (Pay As You Earn) scheme. HMRC sends a tax code to your pension payer to tell them how much tax to take off, including any due on your State Pension. This might make the tax on your company or personal pension seem high but it's because it includes the tax due on your State Pension.
     
  10. Im all for paying fair taxes to maintain our society.But it boils my piss when I see people who have worked and pay'd taxes all their lives and try'd to put something away for their retirement,so as not to be a burden on that society, treated like this. And while id have little time for Russian oligarchs, I think whats happening in Cyprus is setting a dangerous precedent. Its basically the state stealing peoples money, in an even more blatant way.Any bets on how long it is until our lot think of giving it a try?
     
  11. Benjamin Franklin said, "The only things certain in life are death and taxes :laughing5:
     
  12. Most people with a Company pension have at some time(or all of the time) paid from their wages to contribute to it.These contributions have not been subjected to tax.HMRC therefore think it's only fair that when you do finaly get the pension you pay some tax on it if it takes you above your personal allowance.Nobody likes it but I can't see why all pension payments(from whatever source) should be tax free.
    I think the £1,5 million figure mentioned earlier was introduced to plug a loophole where company CEOs and high flying execs were getting pension pot payments in lieu of salary to try and hide the money from the taxman.
     
    • Like Like x 1
  13. Am in receipt of pussers, local government and state pension, effectively pay tax on pussers and local government pension as state one is less than personal allowance. Always gives me a warm glow when I think how much tax I paid from age 16 to 65 only to pay even more to keep the likes of the bone idle sod living opposite me.
     
  14. I get a pension of over £32K a year and it's a minute fraction of my lifetime allowance. Something's wrong somewhere, MG.
     
  15. Perhaps I'm getting wound up over nothing but I think a visit to a Financial Advisor nearer the time may be in order! Its the add this and that and multiply by 25 that gets me!
     
  16. FFS. An FA. Now he can lose you some more money^^\\\\\\\'
     
  17. I got the following PM yesterday in the mistaken belief by Vauxhall that it was me having a problem.
     
  18. Yeah ... but not 55% of the gratuity and 25% of your pension!

    Mind ... been talking to a colleague who has just gone through all this and he has put me straight ... its pension x 25 plus gratuity and then the new pension x 20 plus gratuity so on those calculations will be well inside the limit!

    Breathes sigh of relief! :tard:
     
    • Like Like x 1
  19. Yes, sorry Bandy-E. Struggling with a bad cold and not reading properly but at least I err'd in a caring way.
     

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