Gratuity after 22

Discussion in 'Finance & Pensions' started by polar, Jul 26, 2011.

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  1. Just a quick question,

    Due to receive my gratuity in a month and wanted to know if you get emergency taxed on it.

    May sound a silly question but you know what people are like with stories.
     
  2. I think the gratuity is tax free, don't remember any tax stuff with mine.
     
  3. sgtpepperband

    sgtpepperband War Hero Moderator Book Reviewer

    What Wrecker said. Lump sum is tax free, but your pension is hit.

    Also, if you are not in immediate employment when you leave (and need to sign on at the Job Centre to get your stamp paid) you will not receive any Jobseeker's Allowance as your pension will effectively nullify any Government benefits that others out of work would receive.
     
  4. Lump sum normally paid within 30 working days (6 weeks), and is tax free.
     
  5. Tax free........then it's 'Open Season'.....lotz of peeps will help you spend it
     
  6. Big time @ 22%, if it is anything like mine.

    Best you advise HMRC also, because you can bet your bottom Euro - the Pension people won't have done so, even though they say they will/have, and are supposed to do so !!

    I'm fighting a running battle with HMRC at the moment because they are stating I have been avoiding tax payments since 2006 !
    :censored:
     
  7. Good advice from whitemouse. Because our pension tax office is in wales but the people I work for are Porstmouth based and use the pompey tax office I had a few snags sorting all that out.

    If your pension and employment tax offices are different places don't for one minute think they talk to each other or, as far as I could see, use the same databases and computer systems.

    You have to keep on top of the ******* and keep copies of every letter and e-mail you send and make sure, if you phone them, that you write down the name of the person your talking to and the DTG of every call.
     
  8. Tax man arggggghhhh so many run ins with those feckers and to make it worse the place I have to contact is in Glagow and don't they just love putting us southeners in their place, still indexed linked next year and really don't give a fcuk if its RPI or CPI because ther'e both going through the fcuking roof.
     
  9. Tax on RN pension is done directly from your tax centre . You will get a personal allowance assessed tax code and pensions earnings above that is taxed at the current rate .HMRC pass that coding to Paymaster and tax is deducted before you get your RN pension monthly payment
    Work earnings should be taxed at source by your finance department monthly -using the initial HMRC tax code .Have local tax offices
    up here and they usually sort any problems if you have any.
    Mind you at one time I suggested I go self assessed !!-----pay them myself each year!

    G
     
  10. Polar, spookily enough I've just read an interesting article with regards this very subject in the May 11 edition of Pathfinder. I'll attempt to copy a link in below, but likelyhood is it won't work. You could try looking at it at your ressetlement office/library if not? It's on Page 8, and written by some 2 & 1/2 from the Forces Pension Society. Very informative.

    Pathfinder International - Pensions: Getting Your Hands On The Money

    Hope this is useful

    Gollyman
     
    • Like Like x 1
  11. Gratuity is tax free, but pension is taxed at source, if you are over 55 and drawing your pension then you will lose £ for £ of any job seekers allowence you get. If other words thank you jack but up yours!!!!!. Since leaving the mob I have been made redundant 3 times and not a penny from our grateful government has ever made it into either my wallet or beer fund.
     
  12. Well it wouldn't would it?

    You, like me, are in receipt of a pension which gives you an income above the threshold which would entitle you to state assistance. Do you feel we should be a special case?
     
  13. It is worth applying to your resettlement team to attend the Financial Aspects of Retirement course - you do not have to be due to leave the Armed Forces and you can do the course more than once if you so wish. The first hour and a half session is delivered by the Forces Pension Society and cover all aspects of Armed Forces Pensions (including commutation), liability for National Insurance Contributions, Taxation, the State Pension and pensions if you live abroad.
     
  14. Quick question.......I put in my notice and left the mob after six and a half great years!! Had I stayed on ,I would have completed my 22 by now. I am 41 yrs of age but living outside the UK. Am I entitled to anything as regards gratuity or pension?
     
  15. witsend

    witsend War Hero Book Reviewer

    I'm no pension expert, but I believe you won't get a penny until your 65. At 65 you'll recieve 6 & half 27ths of a full pension which is index linked. I could be wrong so its best check with the armed forces pension guru's.

    And welcome to the site you quitter. ;P
     
  16. I do believe your right Wits
     
  17. Definitely tax free!
     
  18. Irish

    I've just seen your question.

    I would recommend sending an e-mail to the SPVA, seeking its guidance.

    Its e-mail address is:

    [email protected]

    (Put the words 'Service Pensions' in the Subject Line)
     

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