{"id":103623,"date":"2025-08-30T19:21:10","date_gmt":"2025-08-30T19:21:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/103623\/"},"modified":"2025-08-30T19:21:10","modified_gmt":"2025-08-30T19:21:10","slug":"thousands-could-face-new-tax-bills-as-retirement-tax-row-erupts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/103623\/","title":{"rendered":"Thousands could face new tax bills as ‘retirement tax’ row erupts"},"content":{"rendered":"

The amount people can earn before paying income tax has been frozen at \u00a312,570 since 2021 – but state pension payments have continued to rise each year pushing some people over the threshold\"An(Image: Catherine Delahaye via Getty Images)<\/p>\n

Pensioners with modest private pensions could be hit with a tax bill from HMRC.<\/p>\n

This comes as frustration grows over the frozen tax bands, which are resulting in an increasing number of pensioners having to pay income tax.<\/p>\n

The personal allowance – the threshold at which people start paying income tax – has remained stagnant at \u00a312,570 since 2021.<\/p>\n

However, state pension payments have continued to increase annually, pushing millions towards or beyond this threshold.<\/p>\n

While the state pension alone isn’t sufficient to exceed the \u00a312,570 mark, a small private pension or other forms of income can push households past this total.<\/p>\n

This is precisely what’s happening to thousands more elderly individuals each year, with campaigners criticising the system as unjust.<\/p>\n

The state pension could increase by as much as \u00a3550 next year, nudging more people into the tax-paying bracket.<\/p>\n

Tax bands are currently set to remain frozen until 2028.<\/p>\n

Conservative leader Kemi Badenoch has accused Labour of imposing a “retirement tax” on pensioners. She recently stated: “Under Labour, millions of our poorest pensioners face being dragged into income tax for the first time ever.”<\/p>\n

She questioned: “Does the Prime Minister think it is right that struggling pensioners should face a retirement tax?”.<\/p>\n

In response, Keir Starmer said: “We will stick to our manifesto commitments, we will stick to our fiscal rules.<\/p>\n

“This is a language they (the Conservatives) don’t understand. That’s what got us into the problem in the first place.”<\/p>\n","protected":false},"excerpt":{"rendered":"The amount people can earn before paying income tax has been frozen at \u00a312,570 since 2021 – but…\n","protected":false},"author":2,"featured_media":103624,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-103623","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/103623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=103623"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/103623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/103624"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=103623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=103623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=103623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}