Higher Rate Taxes Trap for1 in 5 Pensioners

Under a Freedom of Information request by Quilter to HMRC, research and numbers revealed that:

• 1 in 5 pensioners will become higher rate tax (HRT) payers by 2028 if tax thresholds remain unchanged until 2027/28.
• That’s 3.1m pensioners overall that will pay HRT if not already doing so.
• 2.7m over people aged over 60 will fall into the HRT trap (both workers and retired).
• An additional 0.5m people over age 70 will also become HRT payers.

Comment

We all need to pay taxes but many of our clients say it feels like those that have not saved get everything at the expense of those that have saved.

Do not get us wrong, those that have disabilities or those that have suffered abuse or are victims of cirmcumstances beyong their control e.g. caring for loved ones, should be helped but with over 9m economically inactive people between the ages of 16 and 64, so many are not contributing to society yet benefitting at the expense of others meaning our pensioners who have ‘done their time’ get hit.

Successive governments have not tackled this issue as many politicians are fundamentally vote chasing.  We do not care whether your politics are red, blue, green, yellow or purple, many politicians simply do not do the job they have been elected to do and they should be held to account if they do not tackle the difficult issues ‘head on’ with honesty and integrity.  Tell the people the truth, we are not idiots.

Covid debt has to be paid for, the NHS and the care system needs huge additional funding help but with a quarter of the work age population not working as well as too many high flying executives getting massive bonuses and dividends when many employees are scraping by on minimum wage (and forced to claim benefits) is simply unacceptable.

Come on Mrs Reeves, step up and make history.