Pension or property

[Highland Mule]

Sunday Telegraph article this week suggested that they might drop the rise for SME's on up to 250k profit

There's already a sliding scale with some relief - was it that perhaps that the ST referred to?

Let's face it this is the last budget that the Tory's have to get right to have any glimmer of getting re-elected !

They really have to throw business a bone this time

I really don't think they have a chance anyway.

 

[farmerm]

There's already a sliding scale with some relief - was it that perhaps that the ST referred to?

I really don't think they have a chance anyway.

I think when Labour get in they will sh1t themselves. They are well able to be critical in opposition but they rarely offer up anything that is a credible alternative idea to any issue.

 

[Highland Mule]

I think when Labour get in they will sh1t themselves. They are well able to be critical in opposition but they rarely offer up anything that is a credible alternative idea to any issue.

OT for this thread but I’m really struggling to see what they can do worse than the current crowd.

 

[farmerm]

OT for this thread but I’m really struggling to see what they can do worse than the current crowd.

Time will tell.....

 

[Stw88]

OT for this thread but I’m really struggling to see what they can do worse than the current crowd.

If there was an easy way to sort the mess the country is in out I think it would already have been done. Yes mistakes have been made but its easy to criticise in hind sight. The only way to sort things out would upset alot of people and governments try not to do that if possible.

 

[robs1]

They need to raise the tax on dividends to the same as basic rate tax, too many pay themselves minimum amount via PAYE and huge dividends, I'm all for helping businesses but it should be genuine help not just a tax fiddle

 

[thesilentone]

I have been putting away a bit in ISAs over the years as well as regular NFU pension contributions but as i have reached 60 and the farm has contracted in size, I'm pondering whether I am better off reducing my pension payments for the last 5 years or transferring a bit from the ISAs each month to top it up since I don't have the spare income floating around in the way I used to. Is there much benefit either way?

Remember ISA cash is tax free, pension's are taxable.

 

[SilliamWhale]

Not really - the marginal taxation rate was seriously high. Why would you work an extra 25% of your week for maybe only 5% extra money? Try offering your GFW an overtime rate that's a quarter of normal time and see how you get on.

You mean once they had achieved the million pound pot? I don'ty understand how 25% extra work was taxed at 80%?

 

[bobk]

lots of SME's really struggling right now with added problems of BB loan repayments , last thing they need is 25% corp tax

If they're making no money tax isn't an issue

 

[bobk]

OT for this thread but I’m really struggling to see what they can do worse than the current crowd.

You reckon .

 

[Highland Mule]

You mean once they had achieved the million pound pot? I don'ty understand how 25% extra work was taxed at 80%?

Marginal rate, but yes. The £1M isn't difficult to reach, and they can't opt out of paying into the pension fund so they get taxed on the way in and then out again at a very disproportionate rate. I'm not sure of the exact percentage but my tax advisor was clear that it wasn't worth their while once they knew they were on track to hit the ceiling.

Same thing applies to many of these graded scales - whilst the overall rate might not look too bad, the marginal rate can be. I remember my mother refusing a pay rise back in the days because she was going to be worse off with than without (presumably would have put her over an NI threshold or something).

 

[Highland Mule]

You reckon .

I'm sure they will find something, but the current lot have set the bar pretty high !

 

[bobk]

Marginal rate, but yes. The £1M isn't difficult to reach, and they can't opt out of paying into the pension fund so they get taxed on the way in and then out again at a very disproportionate rate. I'm not sure of the exact percentage but my tax advisor was clear that it wasn't worth their while once they knew they were on track to hit the ceiling.

Same thing applies to many of these graded scales - whilst the overall rate might not look too bad, the marginal rate can be. I remember my mother refusing a pay rise back in the days because she was going to be worse off with than without (presumably would have put her over an NI threshold or something).

Be a bugger if you pop your clogs with 2 big ones in your pension

 

[Clive]

If they're making no money tax isn't an issue

not quite correct if they have capital repayments to make such ad bb loan

 

[bobk]

not quite correct if they have capital repayments to make such ad bb loan

Assuming you're talking about bounce back loans , more fool them

 

[Highland Mule]

Be a bugger if you pop your clogs with 2 big ones in your pension

Depends how old I am. If under 75 then it's tax free to the next generation. If over that, it's just like having it in the bank, except quite a bit bigger because I got tax relief on it.

 

[bobk]

Depends how old I am. If under 75 then it's tax free to the next generation. If over that, it's just like having it in the bank, except quite a bit bigger because I got tax relief on it.

I didn't know that .

 

[Clive]

Assuming you're talking about bounce back loans , more fool them

I would suggest many businesses had no choice - how the hell do you keep a pub or restaurant / high street shop going through lockdown ? Government forced good businesses to close their doors yet they still had overheads to cover

as farmers we really were detached from the reality most other small business faced

 

[Highland Mule]

You mean once they had achieved the million pound pot? I don'ty understand how 25% extra work was taxed at 80%?

Your Marginal Tax Rate - Medics Money

Understand marginal tax rates with this blog post by Tommy from Medics Money.

www.medicsmoney.co.uk

83% marginal deductions under certain circumstances, and I don't think that's the worst it gets.

 

[Highland Mule]

You mean once they had achieved the million pound pot? I don'ty understand how 25% extra work was taxed at 80%?

And add this to the equation which penalises earnings even more...

NHS pension annual allowance

Doctors are being excessively taxed on their pensions. This guidance informs you about your annual allowance statement and your options should you be charged.

www.bma.org.uk