Combining tax and NI

[Caran]

How will this affect tax paying pensioners? Currently we do not pay NI on our pensions but if they combine it will we have to pay both?

[dotty.]

Plus, if they do that, what will happen about the rebate I get for my pension contributions via my natiuonal insurance?

[Caran]

I'm sure they will find a way to squeeze us even more Dotty

[Hopkirk]

What are you talking about?

[Caran]

The government are discussing the merits of combining income tax and national insurance contributions, where at the moment you pay 22% tax and I cannot remember the rate of national i8nsurance but say it is 12%, they are talking of putting the two together and paying one rate of 34%. When you retire you do not pay national insutrance contributions on your pension only income tax, so if they combine them will pensioners then have to pay the higher rate making them once again liable for national insurance.

[craft1948]

If I have to pay NI on my occupational pension and I become ill, do I get sick pay?

[dotty.]

or would you get statutary maternity pay too craft, these are questions we need to know the answer to,

[craft1948]

Wouldn't work for me dotty..................I sell my eggs.

[Caran]

Where would you send your sick note to?

[craft1948]

The people who pay my pension............

[Caran]

But what if you have more than one pension?