Tax threshold freeze lands 1.3m with surprise demands from HMRC

Contributing sentiments towards policy:

47% : The Tory freeze on tax thresholds was imposed in 2021-22 and then extended through to 2028.
46% : Frozen income tax thresholds are dragging growing numbers of pensioners and savers into the tax net - with more than 1.32 million people hit with unexpected end-of-year demands from HMRC. New figures show the number receiving so-called simple assessment letters almost doubled in just two years, as the state pension rises while the £12,570 tax-free personal allowance remains frozen.
42% : In the 2023-24 tax year, 1.32 million people were sent the dreaded brown envelopes telling them they owed income tax, up from 675,000 in 2021-22, according to data obtained from HMRC under freedom of information laws.
39% : The surge has been blamed on a stealth tax effect caused by the tax threshold freeze, first introduced by the Conservatives when Rishi Sunak was Chancellor, colliding with rising retirement incomes.

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