Comments on: The Daily Mail betrays middle Britain on pensions

By: John Robertson

John Robertson — Mon, 21 Nov 2011 17:17:00 +0000

Like the Daily Mail, you have misunderstood the whole position over tax releif on pension contributions. The real scandal is that there is no such thing as tax “relief” for standard rate tax payers for both private and public sector workers. The reason being that when the pension is paid part of it is in fact a return of your original investment, yet it is taxed as income. Its a bit like putting money into the building society then having 20% knocked off when you draw it out. Not only that, pension funds no longer have the benefit of dividend tax credit, thank you Mr Brown, or the annual capital gains tax allowance. All pensions are taxed in full at 20%, or even 40% if you have saved enough. Many people pay back tax at 30% because the return of their own money is treated as income resulting in the loss of the age related allowance.

The government makes a great deal of money out of these taxes on pensions, public and private sector. The use of the term “tax relief” should be prosecutable as misselling.

By: George Stephenson

George Stephenson — Fri, 25 Mar 2011 21:09:26 +0000

HM Revenue & Customs have place a £16 403 68, tax debt on me,I am sixtynine years old,and have payed my tax,via my employer,it seems my ex-Employer did not operate the correct code.Chris O’Connellin tax office advice was to write in to the Tax Office. Can you Please help.Regards, George.

By: John77

John77 — Tue, 30 Mar 2010 13:51:04 +0000

The original rationale for granting full tax relief on pension contributions does not apply to those earning over £100k on any sustainable basis and I personally should be happy to see tax relief on all pension contributions limited to the basis rate.
That said, your article is as misleading as the Daily Mail’s. Firstly the Daily Mail was not just referring to higher rate tax relief; secondly, the total tax relief on contributions by employees and the self-employed was £7.65bn in 2007-8 and £7.1bn in 2008-9 according to HMRC so it is impossible to argue that the 1% of tax-payers are pocketing £10bn, thirdly over 20% of all pension contributions are made by those paying minimum contributions and another 16% by those in stakeholder pension schemes. Your claim that 60% of the benefit goes to higher rate taxpayers implies that there are no middle-income workers in the BP, BT, Shell, Glaxo, Prudential, Tesco … etc pension schemes. Tripe!
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By: Sunday Times becomes ever more like the Daily Mail | ToUChstone blog: A public policy blog from the TUC

Sun, 28 Mar 2010 17:47:34 +0000

[…] today’s Sunday Times that plays exactly the same trick as the Mail article I wrote about on Left Foot Forwards on Friday. The true cost of Labour tax grab: small print reveals the extent of pain for […]

By: Mr. Sensible

Mr. Sensible — Sun, 28 Mar 2010 09:46:22 +0000

Guido there is effectively a spend; you know you’re going to get less revenue from that section of society.

By: Guido Fawkes

Guido Fawkes — Sun, 28 Mar 2010 07:43:46 +0000

It doesn’t “cost” the state anything, what you really mean is that the state doesn’t take taxes from pension contributions.

The author claims it is “hard to justify spending money” on tax relief. There is no “spend”.

The mindset here is revealing, it forgets that it is the taxpayer who pays the state not the state that pays the taxpayer.

By: Mr. Sensible

Mr. Sensible — Sat, 27 Mar 2010 10:56:20 +0000

The Daily Fail does what the Daily Fail does best.

By: Nigel Stanley

Nigel Stanley — Sat, 27 Mar 2010 10:49:29 +0000

One small correction – knock-on effects means that people earning more than £130,000 will lose some relief.

By: David Sterling

David Sterling — Sat, 27 Mar 2010 07:35:38 +0000

I’m afraid your piece is absolutely biased and incorrect. Brown, as Chancellor, raided private & company pension funds in October 1997 (£5 BILLION annually)and has continued to do so till this day. He destroyed what was considered one of the best Pansions Industry in the world. Many have has reduced pensions and some have lost theirs due to schemes collapsing. Brown is responsible and yet protects public pensions at the expense of those in the private sector.I can assure you Brown will be in for an almighty shock on the morning of the 7th May because Pensioners will never forgive.

By: Trade Income

Trade Income — Sat, 27 Mar 2010 01:48:27 +0000

The Daily Mail betrays middle Britain on pensions | Left Foot Forward http://bit.ly/cIZmHC