Lets start another contentious Thread

[dad_of_jon]

It seems some financial experts dont like them, and advise you sell up. Logic for me would say that if lots of folk sell up, I have a greater chance of winning.
At least you have instant access at any time and your cash is not tied up for 3 years. As an aside I met an accountant at a seminar, who recommended, buying them with your VAT (if you have a vat registered business) and then sell up after a year to pay the tax man -if you win a few bob its a win win.

I would imagine they adjust the amount of prizes to take account of the reduced pool of money they have.

you can get 4%+ if you lock money up for 1 year. or 3%+ on a 120 day notice account on the market atm.

 

[Brew_DD2]

You want a contentious thread - how about taxation of pension contributions? Far more messy technical and unfair than premium bonds. Bah humbug and all that - absafriggin awful.

It needs to be sorted soon, or we're going to lose even more GPs.

 

[DocAnna]

But you are taxed at a lower rate aren't you? 15% here for private schemes.

Nope - I’m taxed at 46% on the pension contributions my employer and I make - which then comes off my pension at retirement after accumulating compound interest at inflation+ for every year until I retire …. I kid you not.

 

[Leon103]

I would imagine they adjust the amount of prizes to take account of the reduced pool of money they have.

you can get 4%+ if you lock money up for 1 year. or 3%+ on a 120 day notice account on the market atm.

Or 15% no lock in.just need to know where to look.

 

[Robin54]

I would imagine they adjust the amount of prizes to take account of the reduced pool of money they have.

you can get 4%+ if you lock money up for 1 year. or 3%+ on a 120 day notice account on the market atm.

I dont think thats the case. Certainly not at the moment. About 2 years ago when interest rates were virtually zero, then yes, the gov did adjust the amount of winnings. Any adjustments made are always reported in the press anyway.

 

[foxy]

Nope - I’m taxed at 46% on the pension contributions my employer and I make - which then comes off my pension at retirement after accumulating compound interest at inflation+ for every year until I retire …. I kid you not.

Well that definitely isn't fair, over here low income earners pay no tax on super contributions, otherwise it is 15% for the employer and employee who salary sacrifices. It is zero tax after 60 when drawing on super.
The best thing about having a business is all the concessions which can be claimed, legally or illegally. My brain overrode my balls when looking at cryptocurrency but I have taken some calculated risks and been lucky enough to pull them off. I don't count it as illegal if the ATO doesn't pick it up.

 

[Robin54]

Hi
Im no expert, but all contributions to a pension fund are Tax free - period - you only pay tax when you withdraw the funds

 

[The Baron]

Thats how I understood it too Robin

 

[foxy]

It does look confusing but it depends on the rate of tax being paid, at 46%, 21% can be claimed back. Here during the Howard era at the end of the tax year, if one put $1000 into the super fund the government matched it with $2,000. Great while it lasted

 

[Agentgonzo]

Hi
Im no expert, but all contributions to a pension fund are Tax free - period - you only pay tax when you withdraw the funds

Only up to £40k per year (in the UK). After that, you have to pay income tax on the pension contributions.

Which is fair. Pension contributions are effectively tax free for almost everyone. And if it can afford to be putting 40k into a pension every year, you are easily capable of contributing more in tax.

 

[Druncan]

Just wait until you suddenly watch the entitlement age go up and up. I'm 65. - for me UK pension = 66,,,,,, fek'd,,,

Praying to false small gods that Jessie *unt doesn't start pushing the age up,,,, or, I'l just keep on dancing the restaurant jig and if anyone tells you that catering is an easy retirement option/extra, I can show you the scars.

The UK can't even get any eastern block slave labour now since BREXIT,, and who is going to pick the parsnips/sprouts for xmas??? - don't mention the fek'n turkeys!!!!

 

[Chippy_Tea]

Just wait until you suddenly watch the entitlement age go up and up. I'm 65. - for me UK pension = 66,,,,,

67 for me

 

[Polcho]

67 for me too. I wasn’t aware it was different for people.

 

[Polcho]

I would imagine they adjust the amount of prizes to take account of the reduced pool of money they have.

you can get 4%+ if you lock money up for 1 year. or 3%+ on a 120 day notice account on the market atm.

4%? really, where?

 

[Rodcx500z]

If they keep pushing the pension age up why bother with a private one, all that means for most people is your skint during the prime years of your life and no garuntee you will see it, just all start eating from the same trough as they are and fiddle everything you can

 

[Polcho]

I think more people will be thinking along those lines. Especially in terms of benefits. We have the lowest unemployment for 50 years, but I still see articles about people choosing not to to work.
Well that’s fine, but I am not convinced that tax payers need to financing it to be honest.

 

[Scrattajack]

Taxpayers are already subsidising businesses up and down the country when they don't pay their workers a living wage and force them to claim benefits. Why should individuals not adopt the same principle?

 

[foxy]

If they keep pushing the pension age up why bother with a private one, all that means for most people is your skint during the prime years of your life and no garuntee you will see it, just all start eating from the same trough as they are and fiddle everything you can

I think more people will be thinking along those lines. Especially in terms of benefits. We have the lowest unemployment for 50 years, but I still see articles about people choosing not to to work.
Well that’s fine, but I am not convinced that tax payers need to financing it to be honest.

I am with you and Polcho Rod, just don't get greedy. Friday afternoon I was buying a car on finance for my business, I wanted the car that day the finance takes about 3 working days to get through. Made an agreement with the dealership, paid for the car on credit card went back the following week signed the lease agreement, got a cheque back for my credit card payment. At the end of the tax year I claimed the $45,000 as a business loan from my credit card ( no interest ) that would have sent up a flag to the ATO $45,000 tax free.

 

[DocAnna]

Only up to £40k per year (in the UK). After that, you have to pay income tax on the pension contributions.

Which is fair. Pension contributions are effectively tax free for almost everyone. And if it can afford to be putting 40k into a pension every year, you are easily capable of contributing more in tax.

It's not that simple. In the NHS, the allowance applies to a calculation which is nothing to do with how much has been paid into the pension, and not a matter of choice for the NHS Scheme. ie it's not a case of paying in or affording to pay in 40K of pension - sheesh I wish. The calculation means that when inflation goes up and you are in the last few years of service, you'll exceed the calculated limit automatically and have a fee to pay on money you never earned. I'd happily pay tax on my pension contributions throughout the year, it would be an awful lot less than the calculated charge and I don't come close to paying in 40K a year.

I'm wishing I'd not brought this up - but the situation is incredibly unfair for the NHS, it means for many doctors over 50, they will be penalised for working 5 days a week rather than working 4 days a week.... which is one of the reasons the NHS is struggling with staff. You ask someone to do some hours to help out, oh and we'll charge you for doing those hours. I am utterly daft since I still help out in the evenings in the hospital 2 days a week, one of a shrinking number of people willing to help. I feel an out dated sense of duty and vocational obligation that doesn't make any financial sense, but I do so anyway.

So what's the point of posting here on a brewing forum - I guess it's to inform, that it's not a case of doctors paying more than 40K into their pensions, or even having any choice over the matter, and left unchanged with the inflation rate as it is, this is going to far worsen the staffing situation. Ok I'm going to leave it at that, it's actually quite upsetting as I want to help patients, work to retirement age and give back through education and support of those coming into the profession, but the charges are punishing and it's making me re-assess what I can do for the next few years.

 

[Crappyfish]

4%? really, where?

Virgin money bonds 1 year fix