What is a rich household?

No you don’t pay tax on pension contributions. The system here is different from the Australian one.

nanna8

I don’t get why you pay tax on pensions. You’ ve already paid tax on the money that went towards it. The government are thieving off you. Thankfully we don’t have that otherwise many of us older people would be very poor.

In Australia you don’t have a universal state pension, we in the UK get a pension whether we need it or not then we get taxed on our whole income.
Taxation on everything, spend your hard earned you get VAT, invest it you pay tax on interest, hoard it you get inheritance tax, and so it goes on.

But we don’t pay tax on pension contributions 😀

Doodledog

But we don’t pay tax on pension contributions 😀

Higher rate tax payers have their pension payment credit reduced the more they earn, so, while most people will get tax relief on all their pension payments, some high earners may not.

M0nica

Doodledog

But we don’t pay tax on pension contributions 😀

Higher rate tax payers have their pension payment credit reduced the more they earn, so, while most people will get tax relief on all their pension payments, some high earners may not.

Higher rate tax payers have had an increased subsidy from the Treasury when they paid their contributions.

David49

nanna8

I don’t get why you pay tax on pensions. You’ ve already paid tax on the money that went towards it. The government are thieving off you. Thankfully we don’t have that otherwise many of us older people would be very poor.

In Australia you don’t have a universal state pension, we in the UK get a pension whether we need it or not then we get taxed on our whole income.
Taxation on everything, spend your hard earned you get VAT, invest it you pay tax on interest, hoard it you get inheritance tax, and so it goes on.

Employers are required by law to make pension contributions for all employees in Australia, it will be 12% from this year.
The employee can contribute too. These contributions are taxed but at a lower rate than normal.