Charging income tax on private pensions is fair because the retirees received income tax relief when they paid in. However, there is no relief on NIC contributions when someone pays into their pension. So, if the Exchequer were to charge NIC on income from the private pensions it would be double dipping.
Maybe, but that's surely not what National Insurance is (at least as it really exists). In any case, if NI is something you pay in order to get pension benefits - doesn't that strengthen the case for not charging NI on pensions?
Isn't it about time that we weaned ourself using National Insurance - a tax that has no good reason to exist separately from income tax - whenever government needs to increase taxes while claiming to not raise taxes?
Charging income tax on private pensions is fair because the retirees received income tax relief when they paid in. However, there is no relief on NIC contributions when someone pays into their pension. So, if the Exchequer were to charge NIC on income from the private pensions it would be double dipping.
Maybe, but that's surely not what National Insurance is (at least as it really exists). In any case, if NI is something you pay in order to get pension benefits - doesn't that strengthen the case for not charging NI on pensions?
Isn't it about time that we weaned ourself using National Insurance - a tax that has no good reason to exist separately from income tax - whenever government needs to increase taxes while claiming to not raise taxes?
I’m torn on this. You make a fair point - but I still think there’s value in the principle of social insurance for pensions and benefits.