State pensioners are being hit with a tax bill, with older people in the UK receiving ‘simple assessments’ from the Labour Party government tax arm.
State pensioners are being hit with a tax bill, with older people in the UK receiving ‘simple assessments’ from the Labour Party government tax arm.
State pensioners are receiving two-word HMRC letters demanding cash from their pension. State pensioners are being hit with a tax bill, with older people in the UK receiving ‘simple assessments’ from the Labour Party government tax arm.
It comes as more and more are dragged into the net of HMRC. A spokesperson for Spencer Churchill Claims Advice said: “We are seeing the full effects of fiscal drag in action.
“The Government’s decision to freeze income tax thresholds while increasing the state pension has created a perfect storm – one where more pensioners are unknowingly pushed into the tax system.”
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The experts said: “The tax rules haven’t changed – but people’s income has, and that’s what’s catching people out. These aren’t high earners. They’re ordinary pensioners who might only be a few hundred pounds over the allowance, but they’re now being treated like underpaying taxpayers.”
They said: “Most pensioners don’t expect to hear from HMRC unless they’ve done something wrong – so receiving a formal tax bill with little explanation feels intimidating. Many are left unsure how to challenge it and reaching HMRC for support has become increasingly difficult.”
They said: “This issue is only going to grow. If current policies continue, we expect even more pensioners to face tax demands in the coming years. There needs to be clearer communication and a more supportive system in place for those being caught out through no fault of their own.”
The spokesperson went on and added: “We’d urge any pensioner who’s confused or concerned by a recent tax demand to get advice before paying. It’s possible that income or allowances have been miscalculated, and there may be ways to challenge the bill.”
Generally pensioners whose only income is the state pension will not have to pay any income tax in practice. This is because their annual income will fall below the personal tax allowance – the amount of income taxpayers may receive tax-free.