TAX ON FULL STATE PENSION APRIL 2027

ROG

I notice that ML has not mentioned that IF those only getting state pension with no other taxable income then there will a tax bill at the end of the financial year because it cannot be under the PAYE system for some reason

la531983

Yes, this is not old news. It also applies this financial year, not just from 2027 on.

ROG

la531983 said:

Yes, this is not old news. It also applies this financial year, not just from 2027 on.

Who gets more than 12570 a year in state pension?

Ayr_Rage

This has been mentioned for years by many commentators and journalists, old news.

TadleyBaggie

ROG said:

la531983 said:

Yes, this is not old news. It also applies this financial year, not just from 2027 on.

Who gets more than 12570 a year in state pension?

Well I do for one, over £13K for 25/26, suspect many with SSP or SERPS additions. With the 4.5% increase for next year, the number will only grow.

Exodi

Ayr_Rage said:

This has been mentioned for years by many commentators and journalists, old news.

And despite what the OP's title says, this has also been mentioned specifically by Martin Lewis - e.g. yesterday on Social Media:

On a different note, and I'll be frank here, I truly despaired reading the comment section - I had to stop as I was becoming depressed. While it's nice and can be a bit of a bubble on here discussing with reasoned and financially literate people, that comment section was a cesspool of misinformation (I don't know any other way to put it) and it terrifies me that that might represent the views of the average voter.

Comment after comment along the lines of "disgusting" or "shame on them" (which I'm still suprised about because the announcement is of another triple locked increase (which many view as unaffordable)? It's an interesting position to be angry that your pay has increased by so much you've been pushed into a new tax bracket).

I lost count of how many comments were along the lines of "taxed going in, taxed going out" which is objectively incorrect as they get tax relief on their pension contributions... yet no-one seems to acknowledge this and to be honest, there's probably little reason to point it out, else inevitably face the wrath of the mob. It seems to be a unified vacuous view that everyone should get more (where the money comes from, who knows or cares, immigration or foreign aid are the usual suggestions, despite the sums being in totally different exponents).

An example below. It's just thousands of similar comments, it is exhausting to read. In a moment of reflection yesterday, I gained a large amount of appreciation for politicians - because they'll be dealing with this day in and day out.

Annabee

I'd agree with that Exodi. So sick of whining pensioners! (and I'm almost one myself).  They seem to think they should be exempt from tax.

Plus of course, it was the previous Conservative government who froze personal tax allowances, back in 2021. But of course they just don't want to know that. 

Sachakins

Just an aside on this, speaking with others about this incoming income tax on state pensions due to pension rises, I was a dismayed that many thought that their entire pension was to get taxed!
I pointed out that it will only be income/pension received above your tax threshold that is taxed, this settle a few but others still thought it meant a drop in pension due to the 20% on all of it.
I think some basic explanation needs adding to the information put out about this just to help clarify this.

ali_bear

State pension has always been taxable. What brought it into the taxable band is the frozen basic rate threshold. 

booneruk

ali_bear said:

State pension has always been taxable. What brought it into the taxable band is the frozen basic rate threshold. 

Well, along with a long series of consistently chunky increases due to the triple lock

ClashCityRocker1

All those comments are probably from Russian bot factories