Increased lifetime allowance - would you work longer?
Poll: Increased lifetime allowance - would you work longer?
Total Members Polled: 178
Discussion
Gecko1978 said:
Drs left in part because now IR35. The head of IPSE (body that represented contractors) is a Dr and reported to the house of commons people would sooner stop working than pay 60% or more away in tax and have to cover all of thier expenses. The government said nah tough where else can you work....the answer they retired
Who would have thought it? On far more modest earnings I have cut the hours I work rather than pay the SNP 54% tax and NI between £43 and £50k.This is relevant to me as I had breached the lifetime allowance and had locked in protection at least ten years ago so my LTA was actually about £1.5mil. What that meant was that for the last ten years I have not been able to contribute to my pension so I suspect that it may be relevant for some people like doctors who sought that LTA protection like I did. I am actually retired now so it is not that relevant to me but If I was on PAYE I would be delighted to be able to contribute to my pension again.
A decent amount of my pension pot has come from cashing in my workplace pension a few years ago when pension schemes were paying huge multiples to remove the salary linked liability they had.
A decent amount of my pension pot has come from cashing in my workplace pension a few years ago when pension schemes were paying huge multiples to remove the salary linked liability they had.
Countdown said:
irc said:
Who would have thought it? On far more modest earnings I have cut the hours I work rather than pay the SNP 54% tax and NI between £43 and £50k.
Scottish Higher Tax rate is 41%
NI rte above UEL is 3.25%
How do you get to 54%?
Ecosseven said:
Scottish higher rate is increasing to 42% and the threshold for higher rate tax in Scotland is approx. 43600 against circa £50200 in the rest of the UK. A higher rate taxpayer in Scotland therefore pays 42% income tax and 12% NI between the Scottish and UK higher rate thresholds.
Thanks. Every day's a school day!bennno said:
Unlimited allowance!!
This is good news, just need to work out how to max out the 60k allowance with my current DB scheme. Will make a nice change from getting a tax bill every year. Last year my heart sank as I realised, with performance bonus, I’d paid 65k into my pension with only a 40k allowance. The penalty cost me the same as the cash value of the bonus after tax so I effectively received nothing! Cheib said:
This is relevant to me as I had breached the lifetime allowance and had locked in protection at least ten years ago so my LTA was actually about £1.5mil. What that meant was that for the last ten years I have not been able to contribute to my pension so I suspect that it may be relevant for some people like doctors who sought that LTA protection like I did. I am actually retired now so it is not that relevant to me but If I was on PAYE I would be delighted to be able to contribute to my pension again.
A decent amount of my pension pot has come from cashing in my workplace pension a few years ago when pension schemes were paying huge multiples to remove the salary linked liability they had.
I suspect our circumstances are pretty similar so presumably the win for us both is the tax just saved at aged 75 etc depending on what you withdraw in the meantime ?A decent amount of my pension pot has come from cashing in my workplace pension a few years ago when pension schemes were paying huge multiples to remove the salary linked liability they had.
bennno said:
I’ve almost hit the lifetime allowance at 49 y/o and have approx 30k per annum going in.
My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
Good work! Congratulations on your investment discipline My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
bennno said:
Unlimited allowance!!
I think the govt are doing their usual try and hide bad news with good.Increase corp tax to 25% ..... BUT... get rid of LTA and increase conts to 60k.
I think its a really, really bad idea myself. On all 3 points.
The govt are playing a dangerous game because they know for 100% sure that people are going to be all over this like a rash and then come general election time they think people will be frightened to vote labour because they know they would reverse this straight away.
But the issue is labour can still easily get in.
Its going to end in a total mess and probably a lot of upset people in a couple of years if labour do get in power.
Oh and if labour dont get in the govt know they will have a raft of people with mega pots who they can tax more should the economy need a top up.
But you cant complain because its money invested you never were able to invest in the past.
They always give with one hand and take with the other... so for me this is not good news at all.
But you cant complain because its money invested you never were able to invest in the past.
They always give with one hand and take with the other... so for me this is not good news at all.
bennno said:
I’ve almost hit the lifetime allowance at 49 y/o and have approx 30k per annum going in.
My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
The 55 is being increased to 57 in 2028. My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
Jockman said:
bennno said:
I’ve almost hit the lifetime allowance at 49 y/o and have approx 30k per annum going in.
My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
The 55 is being increased to 57 in 2028. My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
bennno said:
Jockman said:
bennno said:
I’ve almost hit the lifetime allowance at 49 y/o and have approx 30k per annum going in.
My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
The 55 is being increased to 57 in 2028. My plan was to take it a bit easier and then retire fully at 55, as pd off with 45% tax and pressures / long hours.
Assuming there’s no change to 55 year eligibility to withdraw then I’ll just stuff as much as possible in my pension for the next few years before taking it easy.
You sure?
https://www.gov.uk/government/publications/increas...
Seems pretty solid on the Govt website. Apologies if I’m misreading.
https://www.gov.uk/government/publications/increas...
Seems pretty solid on the Govt website. Apologies if I’m misreading.
gotoPzero said:
bennno said:
Unlimited allowance!!
I think the govt are doing their usual try and hide bad news with good.Increase corp tax to 25% ..... BUT... get rid of LTA and increase conts to 60k.
I think its a really, really bad idea myself. On all 3 points.
The govt are playing a dangerous game because they know for 100% sure that people are going to be all over this like a rash and then come general election time they think people will be frightened to vote labour because they know they would reverse this straight away.
But the issue is labour can still easily get in.
Its going to end in a total mess and probably a lot of upset people in a couple of years if labour do get in power.
captains of industry are going end up qualifying for the 25% corp tax?
Jockman said:
You sure?
https://www.gov.uk/government/publications/increas...
Seems pretty solid on the Govt website. Apologies if I’m misreading.
Yes I am sure Everything I said is still correct. The article you linked is from 2021. Is now 2023 and its still not been passed into law.https://www.gov.uk/government/publications/increas...
Seems pretty solid on the Govt website. Apologies if I’m misreading.
The article also mentions the date (its Nov 21) that I was talking about.
So in theory, if and when this is passed ( I am not saying it wont be but its not yet) then this may be something that does not effect a lot of people.
Also, as time goes on, they are getting too close to the 2028 date. Personally I think we might see this pushed to early 2030s.
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