Military Pension Tax Exemption!
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Military Pension Tax Exemption!
I wouldn't place a bet on this one but still worth a click!
Goverment Petition - Military Pensions
Numbers growing!!
Regards
Chad
Goverment Petition - Military Pensions
Numbers growing!!
Regards
Chad
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Why should a government-backed pension be tax free? What next, tax-free pensions for civvy employees of MoD, tax-free pensions for jobsworths in the local council?
If you don't pay tax on your income, then those who do pay tax just have to pay more to pick up your tab.
I'm all for good salaries, decent housing and a lot less stretch, but tax-free pensions, why?
If you don't pay tax on your income, then those who do pay tax just have to pay more to pick up your tab.
I'm all for good salaries, decent housing and a lot less stretch, but tax-free pensions, why?
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I have to agree with airborne artist on this one. Mind you in my case it's merely sour grapes; 13.5 years service, pvr'd, = no military pension whatsoever! You young'uns have no idea, why in my day....
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Join Date: Apr 2005
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Snowflakes and that hot place down below spring to mind.
HMG reserves the right to tax "Government Pensions" in the UK irrespective of where the recipient resides on this Planet. My Military Pension, my Wife's Teachers Pension and her State Pension are all taxed in UK although we are Resident in France.
HMG reserves the right to tax "Government Pensions" in the UK irrespective of where the recipient resides on this Planet. My Military Pension, my Wife's Teachers Pension and her State Pension are all taxed in UK although we are Resident in France.
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A-A you ask why should Mil pensions be tax free, why not say I. Of course fully expect it to go the same way as the petition for Mil Hospitals, Tax free pay whilst deployed in Op Area etc.
Flt Lt Mac
To be fair to cazatou, I'm not sure he was actually suggesting it should be changed he was merely stating a fact.
I could be wrong of course but I wouldn't necessarily be so quick to ridicule the man!
BV
I could be wrong of course but I wouldn't necessarily be so quick to ridicule the man!
BV
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Government pensions..such as military and civil service..are not liable to French taxation, be they of French or any other origin. The UK Old Age Pension is not considered as a Government pension and is thus liable to tax in France.
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How much do you contribute out of your salary for your pension i.e. after gross pay on your payslip, what percentage is shown as pension contribution?
Are military pensions still based on final salary i.e. are they defined benefits pensions? (Commuted mine years ago so don't know).
If so, considering that most final salary pensions (that employees contribute a fair whack to) are closing, do you think this is a good idea, never mind as go-er?
Like A_A states, I'm all for decent pay, conditions and if needed, care for our armed forces, but not paying tax? Someone down the line will have to pick up the tab.
Are military pensions still based on final salary i.e. are they defined benefits pensions? (Commuted mine years ago so don't know).
If so, considering that most final salary pensions (that employees contribute a fair whack to) are closing, do you think this is a good idea, never mind as go-er?
Like A_A states, I'm all for decent pay, conditions and if needed, care for our armed forces, but not paying tax? Someone down the line will have to pick up the tab.
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Bob Viking
Thankyou, merely pointing out that HMG would forfeit a very large sum indeed if it acceeded to the petition.
Molemot
Thanks, I will follow that up. Inland revenue would never make such a mistake - would they?
Thankyou, merely pointing out that HMG would forfeit a very large sum indeed if it acceeded to the petition.
Molemot
Thanks, I will follow that up. Inland revenue would never make such a mistake - would they?
What an utterly pointless crusade. I would benefit from this, but fail to see any valid argument why it is justified. Why stop at demanding a tax-free pension, let’s have free lager, and hover boots, and unlimited use of public bouncy castles.
To be honest, I’ll just be grateful if the pension is still there at all when I leave.
To be honest, I’ll just be grateful if the pension is still there at all when I leave.
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Can't see this happening, much as I would like it to.
If they were to introduce such a scheme the protests from other public servants, police, fire, nursing, etc. would be interesting to say the least.
In an ideal world, no-one should pay tax on a pension but this is far from an ideal world. You either tax all pensions or none of them - and I can't see any government giving away that sort of revenue.
If they were to introduce such a scheme the protests from other public servants, police, fire, nursing, etc. would be interesting to say the least.
In an ideal world, no-one should pay tax on a pension but this is far from an ideal world. You either tax all pensions or none of them - and I can't see any government giving away that sort of revenue.
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Len,
Why do you say in an ideal world no one should pay tax on a pension?
Pension contributions are made pre tax, which is why pensions are taxed.
If they were not taxed it would mean that those better off, with more disposable income, would dodge tax by upping their contribution amounts. This would build an even bigger divide between the lower and higher paid people and is just not workable.
In an dream-on ideal world, we wouldn't pay any taxes, or I wouldn't have to pay 40% just because I have worked hard to earn a good wage...
In a more achievable ideal world the Armed Forces, especially the lower ranks, would get paid more in the first place (and nurses etc)...
Why do you say in an ideal world no one should pay tax on a pension?
Pension contributions are made pre tax, which is why pensions are taxed.
If they were not taxed it would mean that those better off, with more disposable income, would dodge tax by upping their contribution amounts. This would build an even bigger divide between the lower and higher paid people and is just not workable.
In an dream-on ideal world, we wouldn't pay any taxes, or I wouldn't have to pay 40% just because I have worked hard to earn a good wage...
In a more achievable ideal world the Armed Forces, especially the lower ranks, would get paid more in the first place (and nurses etc)...
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Why do you say in an ideal world no one should pay tax on a pension?
I wouldn't have to pay 40% just because I have worked hard to earn a good wage...
And this pig is still never gonna fly
Last edited by c130jbloke; 26th Mar 2009 at 13:50. Reason: Rubbish grammer - again !!!! Doh !!!
I don't own this space under my name. I should have leased it while I still could
It may not fly but it is not quite as far off the wall as you might think.
The real issue is why does the treasury pay with one hand and claw back with the other? More logical would be to cut the pension by whatever - 20%, 30% or so and make it tax free.
The state pension is not taxed. They pay out and that is that. What they do do is abate your personal allowance. It might have the same effect but in reality the cash flow is only one way.
Taxing a Government pension makes no sense whatever.
The real issue is why does the treasury pay with one hand and claw back with the other? More logical would be to cut the pension by whatever - 20%, 30% or so and make it tax free.
The state pension is not taxed. They pay out and that is that. What they do do is abate your personal allowance. It might have the same effect but in reality the cash flow is only one way.
Taxing a Government pension makes no sense whatever.
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I agree that there is no chance.
I have however signed up if only to add my 'Wooden Spoon' to the pot.
You may be supprised to learn (or maybe not) that the average civvy still thinks that the pension is Tax Free and you all live in rent free accomodation. With free utilities and no Council Tax!
This discussion was going on when I left some 26 years ago. Some things never change.
Stay safe out there.
CS
I have however signed up if only to add my 'Wooden Spoon' to the pot.
You may be supprised to learn (or maybe not) that the average civvy still thinks that the pension is Tax Free and you all live in rent free accomodation. With free utilities and no Council Tax!
This discussion was going on when I left some 26 years ago. Some things never change.
Stay safe out there.
CS
I don't own this space under my name. I should have leased it while I still could
How much do you contribute out of your salary for your pension i.e. after gross pay on your payslip, what percentage is shown as pension contribution?
Are military pensions still based on final salary i.e. are they defined benefits pensions? (Commuted mine years ago so don't know).
Are military pensions still based on final salary i.e. are they defined benefits pensions? (Commuted mine years ago so don't know).
In terms of pension contribution from gross pay the answer is NIL and the pension is non-contributory. Well that is true to a point.
However the AFPRB, when calculating Comparable Pay reduced the pay comparsion by 11% to allow for pension contribution. In other words if your actual pay was £10000 the AFPRB had calculated a comparator value of £11236.
Many moons ago they decided that that figure was too high and over 2 successive pay rounds reduced it from 11% to 9%. Ignoring inflation rises this meant your £10000 increased to £10113 in year one and £10225 in year two.
Then the actual pension is based on the salary in receipt at the time of retirement. If you retire in March your pension will be lower than a colleague who retires in April. Then there is a second kicker and that is how they proportion subsequent pensions inceases. If you retire in October you get only half theincrease the next year than your colleague who retired in April. Thereafter you both get the same percentage uplift but your base will be lower than his.