Chancellor Urged to Scrap Tax on State Pensions
Tax on State Pensions – More than five million retired people could save up to £1000 per year if Chancellor George Osborne takes the advice of the Office for Tax Simplification (OTS) and scraps income tax on state pensions.
The OTS made the suggestion in a report that criticised “confusing” and over complex tax rules that retired people faced.
Whilst public pensions are not taxed at source, they become taxable when added to other income, typically when added to private pensions and bank interest.
The report to Treasury Ministers said that taxing the state pension made the tax system for the elderly considerably more complicated.
It is thought that the majority of retired people do not know that the state pension is subjected to tax in the way that normal income is.
The report said: “Many of those who do understand that it is taxable feel that this is unjust, given that they have contributed through the national insurance system through their working life,” Among the options identified by the OTS was: “Exempt the state pension from tax altogether.”
His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.
Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.
Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.
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Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.
His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.
Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.
Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.
