Havespannerwilltravel
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You can unleash it on me Rosie. I am over 18 (just).
Hmrc cis!!!
- Thread starter Dandaps
- Start date
mightymouse
Well-known member
Bobby, I get a PAYE Rebate EVERY YEAR, it makes no difference if your CIS or PAYE, if it costs you to go to work, thats tax deductible.
HMRC. They never give up on screwing you! All through your working life and even after you die.
This is a tale currently unfolding for me. Just passed my 65th birthday and the pension service have contacted me to give me the good news on the amount I will receive. In the build I didn’t quite understand what the deduction of £49.36 p/w for COD meant. Following the receipt of a letter from the HMRC it has all become so clear. Apparently back in the dim days of the 1980’s when I worked for SGB we all received a letter from the tax man inviting us to sign out of contributing to ‘SERPS’ as we were paying in to a company pension. By doing this we would save paying the pension portion of the NI contribution, (so would the bosses on their portion). Being a young man with two young children I, like all my Peers, signed up as it would save me around £30-£40 per month (2% of NI as it was) over the coming years. Now for me the maths do not add up. I worked for SGB for 6 years and probably saved myself about £3400.00 (give or take) but each year from now until I expire my pension will be less by £2566.72. Ah! I hear you all say ‘but you have your company pension’. Yes I do but with the total collapse in annuities the company pension barely compensates the amount garnished from my state pension. When 20% paye is deducted I am in fact taking less than the amount of COD.
My advice to all you younger men (and women) out there is any thing offered to you by these shysters may look like gold but never is.
This is a tale currently unfolding for me. Just passed my 65th birthday and the pension service have contacted me to give me the good news on the amount I will receive. In the build I didn’t quite understand what the deduction of £49.36 p/w for COD meant. Following the receipt of a letter from the HMRC it has all become so clear. Apparently back in the dim days of the 1980’s when I worked for SGB we all received a letter from the tax man inviting us to sign out of contributing to ‘SERPS’ as we were paying in to a company pension. By doing this we would save paying the pension portion of the NI contribution, (so would the bosses on their portion). Being a young man with two young children I, like all my Peers, signed up as it would save me around £30-£40 per month (2% of NI as it was) over the coming years. Now for me the maths do not add up. I worked for SGB for 6 years and probably saved myself about £3400.00 (give or take) but each year from now until I expire my pension will be less by £2566.72. Ah! I hear you all say ‘but you have your company pension’. Yes I do but with the total collapse in annuities the company pension barely compensates the amount garnished from my state pension. When 20% paye is deducted I am in fact taking less than the amount of COD.
My advice to all you younger men (and women) out there is any thing offered to you by these shysters may look like gold but never is.
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COD deductions saga continued.....
Now convinced that apart from hswt no one is reading this post I have decided to continue with posts on progression for the sake of posterity.
My next step was to check online to see if anyone else felt as hard done by. Amazingly I found a solicitors office specialising in this very thing, at a price. I have not contacted them yet but instead emailed my financial adviser's secretary with a copy of the letters to get their view. They have just replied to say that the HMRC claim is disproportinate and will take it up on my behalf. lets see how the next few weeks pan out.
Now convinced that apart from hswt no one is reading this post I have decided to continue with posts on progression for the sake of posterity.
My next step was to check online to see if anyone else felt as hard done by. Amazingly I found a solicitors office specialising in this very thing, at a price. I have not contacted them yet but instead emailed my financial adviser's secretary with a copy of the letters to get their view. They have just replied to say that the HMRC claim is disproportinate and will take it up on my behalf. lets see how the next few weeks pan out.
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BetterTAX
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Hi Binthere,
I don't think people aren't reading, I think we're more at a loss of what to say.
Many years ago I worked for an insurance company and did service pension schemes, individual and company.
I was around when the opt in and opt out thing happened. I opted out of paying the government state pension too. Luckily, or not, I left after a few years to start a family and my pension thing became paid up... I think, its been a long time!
Anyway, all these years later and a divorce, it made me revisit said pension (financial settlement etc). There is a cash equivalent that can be used to purchase a pension when my time comes.
The big problem, as we all know, with these pension schemes was market crashes and bad investments by the holding companies - that's why any private pension is worth tuppence now
.
Recently I looked to take the fund out and invest it elsewhere (I had someone advising me). I was told an amount was available but if I wanted to move it, they would calculate the actual amount - which then turned out to be considerably less - because of the market at the time.
So it stays where it is, waiting for prices to go up.
I wish you every success - lots of mis-selling of endowment mortgages and pension plans back in the golden days of the 80s.
I don't think people aren't reading, I think we're more at a loss of what to say.
Many years ago I worked for an insurance company and did service pension schemes, individual and company.
I was around when the opt in and opt out thing happened. I opted out of paying the government state pension too. Luckily, or not, I left after a few years to start a family and my pension thing became paid up... I think, its been a long time!
Anyway, all these years later and a divorce, it made me revisit said pension (financial settlement etc). There is a cash equivalent that can be used to purchase a pension when my time comes.
The big problem, as we all know, with these pension schemes was market crashes and bad investments by the holding companies - that's why any private pension is worth tuppence now
.Recently I looked to take the fund out and invest it elsewhere (I had someone advising me). I was told an amount was available but if I wanted to move it, they would calculate the actual amount - which then turned out to be considerably less - because of the market at the time.
So it stays where it is, waiting for prices to go up.
I wish you every success - lots of mis-selling of endowment mortgages and pension plans back in the golden days of the 80s.
Thank you for the input Better Tax. As I noted earlier a few solicitors have latched on to this, as HMRC have been decimating peoples pensions. From what I am reading Hmrc are paying back large proportions where final pensions do not reach prior expectations. The last thing they want is to upset is a group of people who have a lot of time to kill and nothing better to do.
marra watson
Moderator
bricks and mortar marra that what my money will be going in to
Quite right, as few as 2-4 properties out on rental would set you up. It is the best way. If you do as I did and trust others you will work all your life and end up with virtually nothing much above subsistance.
Stella Fella
Well-known member
Binthere i agree with you from previous, at the same time when i was a young whippersnapper and used to read and listen to ma & da gripes and others about pension payments i thought yeah wont appen to me, plus i can help you 2 out, now shock ive reached an age where it affects me also and i dont expect to much from Government due to the crisis financially which is down to mismanagement of public funds. (Taxpayers suffer yet again)
Just recieved an email from my financial advisor with a full breakdown of the SGB pension which shows the tax man is correct in his workout. So it seem's I did "sell my birthright for a mess of pottage" all those years ago. No matter how vindicated the tax man is, it will never remove the bitter taste I have in my mouth now.
So it seems I must forget about retirement and at 65 start looking for work - Again.
So it seems I must forget about retirement and at 65 start looking for work - Again.
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Binthere A Lot Of People (Not Just Scaffolders) Will Be In Exactly The Same Position As Your Good Self, I Have Came To The Conclusion That This Country Is Jiggered And Having Watched Channel Fours Despatches About Agencies It Just Confirms It.
Sorry to hear it Binthere. I think this is a story that we will not be hearing from just you either - as time goes on
An estimated 6 - 7.5 million people affected from what I have read.