Copy article

Pensioners paying tax for first time

Journalist: Sarah O'Grady, Daily Express

ended 29. January 2024

Almost a million pensioners could find themselves paying tax on their State Pensions for the first time as a direct consequence of the substantial rise in state pensions and the freezing of tax thresholds, is the warning from tax specialists Spencer’s Churchill. 

The 900,000 poorer pensioners most at risk include many who are claiming the little known Marriage Tax Allowance. This is usually claimed by the oldest and poorest people.

Comments please on the frozen tax thresholds pulling these pensioners across payment thresholds.  They are the latest group to feel the pain. Are they the last and is there anything these low-income eldelry peple can do to protect hemselves? If you have any figures for average pensioner tax or the amount of tax likely to be paid on these low incomes please alos send.

 

 

3 responses from the Newspage community

Copy all

Copy

Editor
Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
The personal allowance (the amount that can be earnt tax-free) stands at £12,570. For those claiming the marriage allowance, this rises to £13,830 (with their partner's personal allowance being reduced to £11,310).

The current amount under the "full" new state pension is around £10,600 a year. This is set to rise to around £11,502 from April. As this will still fall within the personal allowance, there won't be any tax liability.

However, for those claiming the marriage allowance, if the partner whose personal allowance has been reduced because of this is also receiving the state pension, the £11,502 will be slightly higher than the £11,310 reduced personal allowance they have. It's therefore important to look at whether it still makes sense to claim the marriage allowance or not for those that fall into this category.

Copy

Editor
Ken James
Director at Contractor Mortgage Services
The Conservatives banging down the Coffin lids of the elderly as they drive them ever deeper into poverty and despair. The fact that many have not experienced having to pay these taxes before will put an extreme amount of pressure on already fragile finances.
How is it possible that in a society where there is plenty of wealth we struggle to support the elderly who have to make jaw droppiing choices such as to heat or eat.
The Goverment needs to do more to support the aging poluation otherwise we are going to see even more deaths from malnutrition and Pneumonia and many other illnesses which could have been prevented with the right level of care and intervention.
Copy

Malcolm Roberts
Founder at LPA Now
Another frozen threshold harming pensioners is the forgotten £12,000 limit for a 50% reduction in Lasting Power of Attorney (LPA) Registration Fees. This limit has remained the same since it's introduction in 2011 when the basic state pension was £5311. Since then the standard pension has virtually double so the LPA limit should have gone up to £24,000 for the benefit to have kept pace. With the state pension being worth £11,500 in April this year anyone with just a tiny private pension will be excluded from this benefit. Given that the majority of applicants for LPAs are of penionable age, this needs to be addressed without delay.