So what are peoples thoughts and any potential impact on yourself

[Sachakins]

Well, a few hours to digest it, what have we got in a nutshell...
A lot of smoke and mirrors, a fair dose of magic manipulation of rules to allow greater borrowing AND the biggest rise in TAXATION this century.

The £25 Billion rise in NI is eye-watering. And the fakery that its on EMPLOYER not employee is just a semantics argument, hidden in the phrase "... no change in your payslip NI..."

Just because it's not shown on your wages does not mean its not an increase.
An employee wage cost to a company is not just your payslip payments. Simply your annual salary of say, £20,000 to you is actually £23,000 to the company when you include the new NI employer rate.

So in actuality your annual gross salary is £23,000, you just don't see it in your payslips. (I've ignored other things like employer pension contributions etc for simplicity)

So when a company costs a project it uses your total salary cost, £23,000 to evaluate project profitability and other costs. If its no longer viable then no project and no job.

How she believes this won't affect the jobs market beggers belief, it will stiffle recruitment at best and cause job losses at worst.

 

[Housey210]

WTF are you on about, it's not 'stolen'.
Let's be clear; When you put money into a pension scheme you get tax relief, firstly on the input payments and on interest earned throughout it's life.
At retirement you can get 25% of the total accrued back tax free. Is that fair ?
You can then either buy an annuity to provide income or leave it to take as required as drawdown. That's taxable income.
Until this budget, if there's a surplus on your death it becomes part of your estate that's tax free, is that fair ?
From now on that might be subject to inheritance tax dependant on the size of your estate.

The change is just a way to get (very rich) people to stop using pension pots as tax avoidance tools. Use them for retirement income, which is what they're meant to be, and nothing changes.

yep. they like the tax relief but not paying it. Many just have these soley as passing on to kids to avoid the tax. A loop hole plugged hopefully, though personally I would like to see their pension pots sucked dry by care home fees as afterall many claim its for their old age. £1800 pw care home fees near me. More than £23k savings then self funded I was told when looking after my elderly mum, no help whatsover, bought everything from hoist to nappies. Cuts cuts cuts to social care help. Pure evil.

 

[mudman]

They are probably better off out of it and looking for better jobs with better companies.
In the meantime they will have the benefit of our marvellously generous over-funded welfare system!
They'll just have to make it clear that it isn't a lifestyle choice, as it is for all the other scroungers
We need massive tax rises to get back up to speed after 45 years of tory bolox - who do you think should bear the largest burden?

You really are a ****.

 

[Robbo3]

And you couldn't put budget in the title so we don't have to waste our time reading this rubbish.
It's fait accompli. You can't do anything about it.

 

[Terry - Somerset]

I’m not APMI qualified but I too was a trustee of several pension schemes for twenty years, a couple of years short of you. It all, if memory serves started with Robert Maxwell and ended in a tax grab of the pension schemes leading to reduced pensions for everyone and the death of final salary schemes and a reliance on contribution based schemes that are no where near as generous if trying to buy an annuity.

The golden age of the final salary scheme was probably 1970-1980s. This typically provided for an inflation proofed pension at age 60 or 65.

In 1982 the average life expectancy of a male age 65 was 13.0 years. By 2005 this had grown to 17.0 years. In 2024 life expectancy is 18.6 years - an increase in the pension obligation of 43%.

That both the private sector and more recently government have sought to change pension arrangements due to the funding challenges is no surprise.

 

[Terry - Somerset]

Well, a few hours to digest it, what have we got in a nutshell...
A lot of smoke and mirrors, a fair dose of magic manipulation of rules to allow greater borrowing AND the biggest rise in TAXATION this century.

The £25 Billion rise in NI is eye-watering. And the fakery that its on EMPLOYER not employee is just a semantics argument, hidden in the phrase "... no change in your payslip NI..."

Just because it's not shown on your wages does not mean its not an increase.
An employee wage cost to a company is not just your payslip payments. Simply your annual salary of say, £20,000 to you is actually £23,000 to the company when you include the new NI employer rate.

So in actuality your annual gross salary is £23,000, you just don't see it in your payslips. (I've ignored other things like employer pension contributions etc for simplicity)

So when a company costs a project it uses your total salary cost, £23,000 to evaluate project profitability and other costs. If its no longer viable then no project and no job.

How she believes this won't affect the jobs market beggers belief, it will stiffle recruitment at best and cause job losses at worst.

It will not be without consequences - it could affect jobs, investment, prices (inflation), or profit.

The only question is which, by how much and when - there is no simple answer.

 

[Ozi]

That's because they're going to implement pay-per-mile instead. You wait.

Sounds fair, the more you use the more you pay.

 

[niemeyjt]

Well, a few hours to digest it, what have we got in a nutshell...
A lot of smoke and mirrors, a fair dose of magic manipulation of rules to allow greater borrowing AND the biggest rise in TAXATION this century.

The £25 Billion rise in NI is eye-watering. And the fakery that its on EMPLOYER not employee is just a semantics argument, hidden in the phrase "... no change in your payslip NI..."

Just because it's not shown on your wages does not mean its not an increase.
An employee wage cost to a company is not just your payslip payments. Simply your annual salary of say, £20,000 to you is actually £23,000 to the company when you include the new NI employer rate.

So in actuality your annual gross salary is £23,000, you just don't see it in your payslips. (I've ignored other things like employer pension contributions etc for simplicity)

So when a company costs a project it uses your total salary cost, £23,000 to evaluate project profitability and other costs. If its no longer viable then no project and no job.

How she believes this won't affect the jobs market beggers belief, it will stiffle recruitment at best and cause job losses at worst.

Just to build on this - don't forget for the hundreds of thousands of "ordinary workers" who are freelancers hit by IR35, this is something that will go straight out of their payslips.

As has always been said - Dogs bark, Cats meow and Labour increases taxes.

The only consolation is that if history is anything to go by, this will be a one term government - followed by several parliaments in opposition. We must just hope the damage they cause is not irreparable.