State pensioners issued update over 'completely separate HMRC tax regime' - Birmingham Live

Contributing sentiments towards policy:

56% : "The tax system must work for everyone, so although it will inevitably involve difficult choices, making changes which will help free up HMRC resources for other areas can be beneficial for everyone."
54% : You can earn up to £12,570 a year without paying income tax, in line with the personal allowance.
53% : That means the full new state pension will be just over £20 away from attracting a tax bill from next April.
52% : " Mr Murphy also said that the tax system can be complex, with the different rates and types of tax that apply depending on your circumstances.
49% : "The usual PAYE system and tax codes would still apply to pensioners with private or workplace pensions though, so the proposals are really about tidying up admin for a very specific group, hopefully without creating a completely separate tax regime for retirees.
46% : As payments go up by at least 2.5 per cent thanks to the triple lock policy, the full new state pension will definitely be subject to income tax after April 2027.
45% : Labour Party Chancellor Rachel Reeves has confirmed recently that those who live solely on the state pension will not pay income tax.
44% : A personal finance expert has issues a warning over tax changes affecting state pensioners.
39% : But the Government has now confirmed that those who live on the full new state pension will not pay the tax even when it crosses the income tax threshold.
34% : Lee Murphy, managing director of The Accountancy Partnership, said: "Chasing tiny tax bills isn't that efficient, so in practice this could mean not issuing tax returns or simple assessments where the state pension creeps above the frozen personal allowance by a small amount.

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