Todays Budget

wuyanxu said:
The scrapage scheme from most manufacturers are nonsense. You have to buy a new car to get it and value of your car is lost.
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What do you mean the value of your car is lost?
If the car is less than £2k to trade in you have got more for the car. If it's worth more than £2k as a trade in, you don't trade it in under the scrappage scheme.
 
nilagin said:
What do you mean the value of your car is lost?
If the car is less than £2k to trade in you have got more for the car. If it's worth more than £2k as a trade in, you don't trade it in under the scrappage scheme.
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You should get £2000 deposit contribution plus the value of your trade in car.

So in my case, I can either sell the car privately for £1800, or get £2000 from most other manufacturers while being restricted to approved deals that go with their scrappage scheme. OR I trade in at Nissan for a Leaf and get £2000 + £1000 out of it.
 
wuyanxu said:
You should get £2000 deposit contribution plus the value of your trade in car.

So in my case, I can either sell the car privately for £1800, or get £2000 from most other manufacturers while being restricted to approved deals that go with their scrappage scheme. OR I trade in at Nissan for a Leaf and get £2000 + £1000 out of it.
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You could have got £7k off a new Transit.;)
 
MatBin said:
My private pension eats up nearly all my personal allowance (as will this generations private pensions in the future) meaning my state pension is actually taxed, so in effect, I wont get the full state pension despite paying in for close on 48 years.
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You wont get the full pension? How come?
 
Well I will get it but I will pay tax on it, so assuming my private pension uses up my personal allowance then all of my Govt pension will be subject to 20% tax. If my private pension was £45k pa then a large chunk of my Govt pension would be subject to 40% tax. Now while I or you may think a private pension of £45k is a large sum of money I don't recall when being advised to put into a pension fund anyone telling me about about the possibility of probability of a tax burden and the more youngsters pay into a private pension the more tax they will pay back to the Govt thus reducing the Government's pension costs.
My private pension is nowhere near £45k pa by the way.
Matt
 
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You’ll get the pension you’re entitled to @MatBin . We all have to pay tax, and whether that tax is paid from your private or state pension, it’s your ‘total earnings’ that are being taxed, not your state pension.

I understand how you’ve concluded what you did, it’s popular thinking, but it doesn’t make it ‘correct’.
 
Phil V said:
You’ll get the pension you’re entitled to @MatBin . We all have to pay tax, and whether that tax is paid from your private or state pension, it’s your ‘total earnings’ that are being taxed, not your state pension.

I understand how you’ve concluded what you did, it’s popular thinking, but it doesn’t make it ‘correct’.
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Phil I fully understand that it's my total earnings, but, I doubt most people are advised that the savings sacrifice they are making for their old-age and that have been dilligently earning "interest" will be quite heavily taxed thereby diluting the value of the Govt pension. In effect the more you save now the more you will be taxed when you retire, hardly an incentive is it.
 
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MatBin said:
Phil I fully understand that it's my total earnings, but, I doubt most people are advised that the savings sacrifice they are making for their old-age and that have been dilligently earning "interest" will be quite heavily taxed thereby diluting the value of the Govt pension. In effect the more you save now the more you will be taxed when you retire, hardly an incentive is it.
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Surely everyone knows they have to pay tax on income?

And let’s remember life is better with a £20k income less tax than a £10k income you don’t pay any tax on?

It’s not rocket salad.

The other consideration of course is that now pension pots are more flexible, there’s a possible advantage to taking a larger lump sum and smaller income,
 
Phew thought the tax on my 2.5 tdi Volvo was gonna go up ,and I ain’t never gonna buy a new one . Or a new house bit of a non event budget as far as I’m concerned
 
Mr Bump said:
wiedly enough the news is though that house prices will go up to fill in the gap.
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Of course it will. Same as when mortgage interest ratess go down. Houses get more affordable so the price goes up. It's just greed.


Steve.
 
Steve Smith said:
Of course it will. Same as when mortgage interest ratess go down. Houses get more affordable so the price goes up. It's just greed.


Steve.
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which is great as I will have 2 houses to sell in a few years :-)
 
MatBin said:
Phil I fully understand that it's my total earnings, but, I doubt most people are advised that the savings sacrifice they are making for their old-age and that have been dilligently earning "interest" will be quite heavily taxed thereby diluting the value of the Govt pension. In effect the more you save now the more you will be taxed when you retire, hardly an incentive is it.
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Do you get the choice of taking a tax free lump sum when you get your pension? Then your private pension payments will be lower.
 
nilagin said:
Do you get the choice of taking a tax free lump sum when you get your pension? Then your private pension payments will be lower.
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I’m not a tax expert, but I know my lump sum is now more flexible, and I believe there are tax advantages.
Just looked it up, you can take up to 25% of your total pension pot as a tax free lump sum. :woot:

As my pension is in different pots at different ages, I think I’m best placed to take full advantage of this as soon as it’s practical
 
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Be careful. If you take all the money in one go the remaining 75% you take is added to your income for the year and you could drop into the 40% tax bracket.
You can drip feed each year and still get 25% tax free of those lumps, the remaining 75% of that small drip-feed amount could then keep you under 40% and possibly even 20% if you have no other income, as far as I am aware.
 
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