Should Military Pensions be tax exempt?

[Ed.]

Geoff82 said:

Fittster said:

Teachers, dustman, etc? Where does it stop?

Exactly - where does it stop? Like I said I only signed it because I have a vested interest. I don't view it as having any chance of being introduced.

Fittster said:

Or is this just public sector good, private sector bad?

Not at all - you can't have one without the other (Unless taking capitalism or communism to its extreme conclusion).

But ones growing at the moment while the other is shrinking and only one of them brings money in.

[mrmaggit]

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

[bouffy]

Of course military pensions shouldn't be taxed. But then again, neither should anybody else's.

If taxes, are in place, they should apply to everybody - and there are no good reasons for the military being treated any differently to anybody else.

Edited by bouffy on Tuesday 31st March 16:38

[Eric Mc]

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

And how would yoiu work that out?

Define a combat zone?
Define what you mean by military personnel

It just would be unworkable. There are many people who serve in the armed forces and are never exposed to a second of danger in their entire careers.
There are many CIVILIANS who work for the armed forces who ARE exposed to danger.

No, it's just a "gut feeling" type petition which would be impossible to administer.

[Holst]

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

I thought they were paid extra when on active service anyway.. but I may be wrong.

[Geoff82]

Ed. said:

But ones growing at the moment while the other is shrinking and only one of them brings money in.

Indeed and I didn't say I saw it as a good thing! Public sector inefficiency and wastage annoys me as much as the next man.

[mcflurry]

angryS3owner said:

Sorry, here I think it should be one rule for all, I'd happily see the tax removed for everyone though.

AFAIK it is tax exempt when you pay in the contributions

[Adam B]

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

not sure many pensioners serve in warzones!

This is taxation when pensions are paid OUT, contributions IN are usually exempt from tax

Can I vote against this stupid proposal?

Edited by Adam B on Tuesday 31st March 17:08

[Guybrush]

What's the point of taxing any public servant? After all, they're paid with private taxpayer's money anyway, so any "tax" the public sector employee pays is just going round in circles - they're money redistributors that's all. Why not reduce their income by the amount of tax and national insurance and then not make any deductions from salary / pensions? It would save a lot of inland revenue jobs, obviously some would still need to be means-tested, but at least those on a basic rate of tax could be treated that way.

[mel]

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

Not just combat zones but I also think that the same rules as apply to expats should be extended to service personel, I have previously spent 18 months in one stint working overseas, I had no access to any UK services at all and worked alongside expats (and perversely Customs Officers HMRC now) who were paid tax free.

My Brother is currently on loan service to the Sultan of Oman, he wears the Sultans uniform, carries the Sultans ID card, if needed he would fight for the Sultan and everything that is needed by him and his family is paid for by the Sultan. The Sultan pays the Ministry of Defence a very tidy sum for the benefit of his service for 3 years, however because his pay is administrated in the UK he pays a full tax & NI contribution. Is that right?

[bouffy]

mel said:

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

Not just combat zones but I also think that the same rules as apply to expats should be extended to service personel, I have previously spent 18 months in one stint working overseas, I had no access to any UK services at all and worked alongside expats (and perversely Customs Officers HMRC now) who were paid tax free.

My Brother is currently on loan service to the Sultan of Oman, he wears the Sultans uniform, carries the Sultans ID card, if needed he would fight for the Sultan and everything that is needed by him and his family is paid for by the Sultan. The Sultan pays the Ministry of Defence a very tidy sum for the benefit of his service for 3 years, however because his pay is administrated in the UK he pays a full tax & NI contribution. Is that right?

No.

Equally, there are plenty of people (myself included) who have always worked, always paid full taxes, never claimed any benefits whatsoever, never stepped into an NHS hospital, and never attended a state school. That's probably not fair either, and I would love to have x years worth of tax rebates for all those things.

(Not having a go at you, just highlighting the injustice in the system)

[Cara Van Man]

Holst said:

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

I thought they were paid extra when on active service anyway.. but I may be wrong.

Yeah?

[Chainguy]

I believe so. Not because I think Military personnel are more important or any of that foolishness, but because of one simple fact.

For years, certainly when I was serving, we were barred from taking out a private pension outside the scheme provided to us by HMG. To do so was a disciplinary act. Nor were we allowed to make any form of overpayments towards it.

Ergo, we were stuck with what we were given, and we had absolutely no control over it. Fair to say, and I know many civvies can relate to this, it has not lived up to the promises that were made.

So, for the removal of the freedom to choose, I believe removing the tax paid on the money drawn down now would go some way to recompense this fact.

[mel]

bouffy said:

mel said:

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

Not just combat zones but I also think that the same rules as apply to expats should be extended to service personel, I have previously spent 18 months in one stint working overseas, I had no access to any UK services at all and worked alongside expats (and perversely Customs Officers HMRC now) who were paid tax free.

My Brother is currently on loan service to the Sultan of Oman, he wears the Sultans uniform, carries the Sultans ID card, if needed he would fight for the Sultan and everything that is needed by him and his family is paid for by the Sultan. The Sultan pays the Ministry of Defence a very tidy sum for the benefit of his service for 3 years, however because his pay is administrated in the UK he pays a full tax & NI contribution. Is that right?

No.

Equally, there are plenty of people (myself included) who have always worked, always paid full taxes, never claimed any benefits whatsoever, never stepped into an NHS hospital, and never attended a state school. That's probably not fair either, and I would love to have x years worth of tax rebates for all those things.

(Not having a go at you, just highlighting the injustice in the system)

I agree but the bottom line is that you were and are living in the UK and rightly so should contribute, the real injustice as I see it was that in my case I was working along side British Customs Officers who because their own organisation agreed that they were out of the country for over x amount of days in the year were deemed as non domicile for tax purposes, in my Brothers current case he serves alongside British "contract" Officers in Omani Army (or mercenarise if you want) who are all paid directly by the Sultan they are also classed by HMRC as non domicile for tax purposes, but he's not.

[bouffy]

Agreed. My Best Man is in an overseas military post for a few years, and is paid in the UK, with UK taxes etc etc - as if he was living here. It's pretty offside (even though he doesn't have to pay for accomodation where he is, he gets an overseas allowance etc etc.)

[mel]

The Overseas allowance is purely intended as an adjustment for the higher costs of living while in overseas jobs, ironically it is calculated annually and takes into account the difference between costs of all sorts of products and services both at home and in the host country along with the exchange rate at that time, in certain countries at the moment serviceman are extremely out of pocket due to the pound bombing against the local currency.

[Eric Mc]

Don't confuse "domicile" with "residence".

They are very different things in tax and law.

[mel]

Eric Mc said:

Don't confuse "domicile" with "residence".

They are very different things in tax and law.

Sorry, that was the non tax accountant in me trying to sound knowledgeabubble, I really meant "not living in the bloody country"

[odyssey2200]

Puggit said:

Should all pensions be tax exempt?

yes!

next...

[Eric Mc]

mel said:

Eric Mc said:

Don't confuse "domicile" with "residence".

They are very different things in tax and law.

Sorry, that was the non tax accountant in me trying to sound knowledgeabubble, I really meant "not living in the bloody country"

And even that may not be good enough to achieve exemption from UK tax.