New 20% benefits stealth tax

[Deleted User]

tatonette wrote: »

This is quite common. Most claimants that are receiving a taxable benefit, ESA, OAP etc are already registered with HMRC to submit an annual tax return and pay their tax once a year.

I don't understand the problem here. If you receive a taxable income that has not had tax already deducted from it and the total of your taxable income is more than your personal allowance, then you will pay tax like the rest of us do.

as pensioners get an additional tax allowance few if any pay tax on a state pension

Hammyman

kaya wrote: »

Your elected governbent know that they will never get to reduce benefit payments so they are taxing the money that is already tax , a friend of mine recieved a letter today from HMRC stating that as of April next year any benefits payments over £143 will attract a 20% taxation, so in effect they are taxing money that is taken as tax already to line their own pockets rather than trying to reduce benefits payments and all the hassle that would cause them, i dont have a link or any more info about this other than the contents of the letter, i guess this will cover housing benefit etc., why not wait until the poor people are suffering then kick them in the stomach mr cameron? whats that-you already have...........................

Contributions Based Benefits are already classed as taxable income. They're merely bringing income based benefits into line with CB based.

And why shouldn't they? If you're an employee you have to pay tax on wages over £143 a week.