At last, a spot of better news for Service pensioners (at least for the time being). Despite George Osborne's enthusiasm for the idea, the Govt has decided it is really too difficult to combine Income Tax and National Insurance into a single tax any time soon. Some commentators had suggested that a new single income tax rate would include tax and NI together which would imply a basic rate of circa 32% which could be bad news for pensioners. In the paper released today on the HM Treasury website, the Govt confirms that they have no plans to charge NI on Pension income. Phew!!!
F.O.D